Identify the foundational principle from the conceptual framework for financial reporting that is being followed, or is being violated.

Identify the principle by name.

Tell me what the principle says (the part relevant to this situation).

Clearly identify what part is followed or violated - and explain your reasoning.

A company recorded the value of a truck it purchased at $40,000. They did not record an expense at the date of purchase even though they had this cost at that time. They planned to wait and see how much they drove the truck for the year before recording any expense. They already had some other trucks.

Usually their trucks last 5 8 years and about 500,000 kilometers.