What is the measurement attribute of accounting?

Accounting measurement attributes mainly include historical cost, replacement cost, net realizable value, present value and fair value.

I. Historical cost

Historical cost, also known as actual cost, refers to the cash or other equivalent actually paid when acquiring or manufacturing a certain property and material. Under historical cost measurement, assets are measured according to the amount of cash or cash equivalents paid at the time of purchase, or according to the fair value of the consideration paid at the time of purchase.

Liabilities shall be measured according to the amount of money or assets actually received by them due to their current obligations, or the contract amount of their current obligations, or the amount of cash or cash equivalents expected to be paid to repay liabilities in their daily activities.

Second, the replacement cost.

Replacement cost, also known as current cost, refers to the amount of cash or cash equivalent that needs to be paid to regain the same assets according to current market conditions. Under the replacement cost method, assets are measured according to the amount of cash or cash equivalents that need to be paid to purchase the same or similar assets now. Liabilities should be measured according to the amount of cash or cash equivalents that need to be paid to repay debts now.

Third, the net realizable value

Net realizable value refers to the net value after deducting the estimated processing cost and taxes necessary for the estimated sales from the estimated selling price in the process of production and operation. Under the measurement of net realizable value, assets are measured to completion according to the amount of cash or cash equivalents that can be received in normal external sales, after deducting the estimated cost of assets, estimated sales expenses and related taxes.

Fourth, the present value

Present value refers to the value of future cash flow discounted at an appropriate discount rate, which is a measurement attribute considering the time value of money. Under the present value measurement, assets are measured according to the discounted amount of future cash inflows expected from their continuous use and final disposal. Liabilities are measured according to the discounted amount of future cash outflows that need to be repaid within the expected period.

Verb (abbreviation for verb) fair value

Fair value refers to the amount that two familiar parties voluntarily exchange assets or pay off debts in a fair transaction. Under fair value measurement, assets and liabilities are measured according to the amount of assets exchange or debt settlement voluntarily conducted by both parties familiar with the situation in fair trade.

Extended data:

Meaning:

Accounting measurement is a basic feature of financial accounting and occupies an important position in the theory and method of financial accounting. Because financial accounting information is a quantitative information, six accounting elements, such as assets, liabilities, owners' equity, income, expenses and profits, must be measured before they can be reflected in financial accounting.

Therefore, since the 1930s, the view that "accounting is a measurement process" has gradually become popular in the accounting field. In fact, many theories and methods of financial accounting involve accounting measurement.

FASB No.5 financial accounting concept announcement "Confirmation and measurement of enterprise financial report" puts forward five measurement attributes: historical cost, current cost, net realizable value, present value of future cash flow and fair value.

Baidu Encyclopedia-Accounting Measurement Attribute