Methods of Accounting For Assets The purpose of this essay is to explore the arguments surrounding the most appropriate method of accounting for assets. The historical cost form of evaluating assets should be used in conjunction with some version of market value. There are advantages and disadvantages for the use of historical cost and the conceptual framework has the potential to affect the application of historical cost as well. Historical cost accounting does have its deficiencies but the advantages of historical cost justify keeping the traditional method of accounting for assets. The Australian Conceptual framework sees general purpose financial re