Under current GAAP, assets that have been donated to a company are recorded at fair value.
Team Debate:
Team 1: Argue that donated assets should not be reported in a company’s balance sheet. Base your arguments on the conceptual framework. You might find the historical cost principle useful in your discussion.
Team 2: Argue in favor of the current GAAP treatment for donated assets. Base your arguments on the conceptual framework, where appropriate.