All items on the financial statements have a name and an amount. On this page we will explore where the amount comes from. This short video will introduce how one item can have different values: 财务报表上的所有项目都有一个名称和一个金额。在此页面上，我们将探讨金额的来源。这个简短的视频将介绍一个项目如何具有不同的值：
Transcript
Hi there, Laura, here. So I want to tell you a little story about this chair you can see on the screen. On Saturday night, I went to my friend's house and he works on a building site where they were renovating a huge office block. So they pulled all the office furniture out and they were going to get rid of it. And his friend at work said, "Would you like to buy two of these chairs? You just pay $200 for each one." So my friend said, "Sure, yep". He bought these two leather chairs. He paid $200 for each one. And on Saturday night, I was sitting at his house, sitting on his chairs eating pizza. And he told me that he looked up how much it would cost to buy one of these chairs, brand new. And he said each chair was $4,000 each brand new. So he paid $200 for a chair that brand new cost $4,000. And he was thinking, should he sell it? He was thinking maybe he could sell them for $2,000 each or should he just keep the chairs and enjoy sitting on these beautiful chairs? And I was sitting on his chair eating pizza. I said, okay, I'm not going to sit on this chair because I don't want to drip oily pizza on your $4,000 chair. And he said to me, no, it's not a $4,000 chair. It's a $200 chair. And like, well, which one is it? Is it a $4,000 chair, which is what it cost to buy brand new? Is it a $200 chair, what he paid for it or is it a $2,000 chair? Because that's what he could get if he sold it now. And this is what we're talking about on this page is about the value, that dollar amount. This chair is actually all three of those things, isn't it? It is a $4,000 chair. It's also a $2,000 and a $200 chair. What we're looking at here is when a company records buying something like an asset, which number do they use? If businesses just chose whatever number they wanted, then you could get very different results on the financial statements and we want all businesses to really be consistent. So the basic rule we're going to say is that businesses use the historical cost principle, and this means that they record the chair at the price they actually paid. So in this example, if this was a business transaction, they actually paid $200. So that's what would be recorded.
Complete all the activities on this page:
Read the text and watch the video on the five methods of determining value.
Check your understanding by answering the quick check question.
Readings
Let's explore measuring value in accounting.
The five methods for measuring value
Each financial statement item has a name and an amount ($). For example on this Woolworths Balance Sheet there are 'Inventories' (this is the name of the item) and the amount is $3,698 million. Where does the amount come from? How is this measured? It is important that all businesses are measuring items on financial statements the same way?
There are different methods for measuring value. Match the method (the names on the right) to it's correct description. Select 'Submit' to check your answers. Then watch the video below to learn more about each method.
Video
Methods of determining value
This video will discuss the different methods for measuring value and includes a few questions to test your knowledge. As you watch this video, take notes of each method and use them to answer the video questions.
Transcript 抄本
There are different methods for determining value: 确定值的方法有多种：
Historical cost 历史成本
When a business buys an item it is recorded at the price that was paid to buy the item. 当企业购买某件商品时，它会以购买该商品所支付的价格记录。
Video question 视频问题
A machine was advertised for sale for $10,000. A business purchased the machine on 1 January 2022 and negotiated to pay only $9,000. By 30 June 2022 the demand for the machine had increased and the market value of the machine is now $11,000. On 30 June 2022 there is $900 of depreciation recorded for the machine. 一台机器的广告售价为 10,000 美元。一家企业于 2022 年 1 月 1 日购买了这台机器，并协商只支付了 9,000 美元。到 2022 年 6 月 30 日，对该机器的需求有所增加，该机器的市场价值现在为 11,000 美元。2022 年 6 月 30 日，该机器的折旧记录为 900 美元。
On 30 June 2022, if using the historical cost method, what is the value of the machine? 2022 年 6 月 30 日，如果使用历史成本法，机器的价值是多少？
$10,000.
$9,000.
$11,000.
$8,100.
Historical cost method means the value of the machine is what you paid to purchase the machine. 历史成本法是指机器的价值是您为购买机器而支付的费用。
Fair value 公允价值
Also known as market value. Fair value is the market value of an item on a certain date in normal business operations. It is an estimate, so there can be different values for the same item. 也称为市场价值。公允价值是某件商品在正常业务运营中某一日期的市场价值。这是一个估计值，因此同一项可以有不同的值。
IFRS requires some items to be recorded at fair value, but this is a topic that you will explore in later accounting subjects. IFRS 要求某些项目以公允价值入账，但这是您将在后面的会计主题中探讨的主题。
Video question 视频问题
A machine was advertised for sale for $10,000. A business purchased the machine on 1 January 2022 and negotiated to pay only $9,000. By 30 June 2022 the demand for the machine had increased and the market value of the machine is now $11,000. On 30 June 2022 there is $900 of depreciation recorded for the machine. 一台机器的广告售价为 10,000 美元。一家企业于 2022 年 1 月 1 日购买了这台机器，并协商只支付了 9,000 美元。到 2022 年 6 月 30 日，对该机器的需求有所增加，该机器的市场价值现在为 11,000 美元。2022 年 6 月 30 日，该机器的折旧记录为 900 美元。
On 30 June 2022, if using the fair value method, what is the value of the machine? 2022 年 6 月 30 日，如果使用公允价值法，机器的价值是多少？
$10,000.
$9,000.
$11,000.
$8,100.
Fair value method means the value of the machine is the current market value on 30 June 2022. 公允价值法是指机器的价值是 2022 年 6 月 30 日的当前市场价值。
Replacement cost 更换成本
The cost of replacing the item by buying an identical item. 通过购买相同的商品来更换商品的成本。
Net realisable value 可变现净值
This is the estimated selling price less the costs to sell the item. This is often calculated for assets like accounts receivable and inventory. 这是预计销售价格减去销售商品的成本。这通常是针对应收账款和库存等资产计算的。
The net realisable value for accounts receivable is the amount of cash the business expects to collect from its accounts receivable. This is usually abit less than what the actual accounts receivable is. 应收账款的可变现净值是企业预期从其应收账款中收取的现金金额。这通常比实际应收账款的应收账款少。
The net realisable value for inventory is the how much the business expects to get from selling the inventory less the costs of sale. 库存的可变现净值是企业预期从出售库存中获得的金额减去销售成本。
Book value or carrying value 账面价值或账面价值
The value of the item after taking into account the wear and tear of using the item. As you use items, for example a car, the value of that item decreases over time. This is called depreciation. The book value is the cost of the item less all the depreciation already recorded. 考虑到使用物品的磨损后的物品价值。当您使用物品（例如汽车）时，该物品的价值会随着时间的推移而降低。这称为折旧。账面价值是物料的成本减去已记录的所有折旧。
Depreciation and the book value or carrying value is calculated for larger assets that will be used for more than one year like buildings, equipment, motor vehicles. 折旧和账面价值或账面价值是针对将使用超过一年的大型资产（如建筑物、设备、机动车辆）计算的。
Video question 视频问题
A machine was advertised for sale for $10,000. A business purchased the machine on 1 January 2022 and negotiated to pay only $9,000. By 30 June 2022 the demand for the machine had increased and the market value of the machine is now $11,000. On 30 June 2022 there is $900 of depreciation recorded for the machine. 一台机器的广告售价为 10,000 美元。一家企业于 2022 年 1 月 1 日购买了这台机器，并协商只支付了 9,000 美元。到 2022 年 6 月 30 日，对该机器的需求有所增加，该机器的市场价值现在为 11,000 美元。2022 年 6 月 30 日，该机器的折旧记录为 900 美元。
On 30 June 2022, what is the book value of the machine? 2022 年 6 月 30 日，这台机器的账面价值是多少？
$10,000.
$9,000.
$11,000.
$8,100.
Book value means the cost of purchasing the machine less any depreciation. This is $9,000 less $900. 账面价值是指购买机器的成本减去任何折旧。这等于 9,000 USD 减去 900 USD。
Present value 现值
Present value takes into account future cash inflows and outflows related to an item and converts them into the value today using a discount rate. You will learn about this in more detail when you study finance. 现值考虑了与项目相关的未来现金流入和流出，并使用贴现率将它们转换为今天的价值。当您学习金融时，您将更详细地了解这一点。
Accounting is not just adding up numbers – its not maths. On financial statements there can be different methods used. There also estimates made, for example the depreciation amount is an estimate. 会计不仅仅是数字的相加——它不是数学。在财务报表上，可以使用不同的方法。此外，还进行了估计，例如折旧金额是估计值。
It is important to understand that for one item that the business has purchased that there are options for what value is given for that item. When you look at the values given in the balance sheet, it is important to understand where those values come from. In some cases the amounts given will be the cost paid for the item. In other cases it may be the cost less depreciation. In other cases you may be looking at the fair value which has been estimated by the accountant. 重要的是要了解，对于企业购买的一件商品，可以选择为该商品提供什么价值。当您查看资产负债表中给出的值时，了解这些值的来源很重要。在某些情况下，给出的金额将为该物品支付的成本。在其他情况下，它可能是成本减去折旧。在其他情况下，您可能正在查看会计师估计的公允价值。
Financial statements, like in this example from Woolworths, are mainly measured using historical cost. In the historical cost principle (you will learn about this on the next page) the amount recorded for an item is what you paid for the item. However, as you continue to study accounting, you will find it’s not always this simple and that there are different values that are sometimes used. Sometimes fair value is used (but you will learn more about this in an accounting major). 财务报表（如 Woolworths 的此示例）主要使用历史成本进行计量。在历史成本原则中（您将在下一页中了解这一点），为物料记录的金额是您为该物料支付的金额。但是，随着您继续学习会计，您会发现它并不总是那么简单，并且有时会使用不同的值。有时会使用公允价值（但您将在会计专业中学到更多相关信息）。
