While AASB $116$ provides reporting entities with the choice to either adopt the $$cost model$($measuring property, plant and equipment at historical cost$)$ or the fair value model, $90\%$ of ASX listed firms have chosen the cost model. Why?

Because managers might consider that historical cost provides a more reliable measure as it is based on occurred external party transaction rather than a hypothetical transaction

Because reporting entities believe that historical cost can be subject to managerial discretion$/$subjectivity and hence less reliable than fair value measurement

Because historical cost accounting allows managers to manipulate profit by determining when to sell an asset

Because cost model can lead to higher profits and this attribute of historical cost accounting might be particularly attractive to managers who are paid a bonus tied to reported profits