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What is the difference between Market value and Historical Cost Accounting?

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What is the difference between Market value and Historical Cost Accounting?

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Many of the Market Value accounting and reporting practices are consistent with generally accepted accounting principles used in the historical cost reporting environment. The Market Value Accounting Standards are intended to support the information expectations of the institutional real estate investment community, which requires a market value-based financial reporting model. The market value basis of accounting in conformity with generally accepted accounting principles is intended to provide for the valuation and reporting of assets and liabilities, and the related measurement of investment operating results. Net investment income is not intended to approximate net income determined under the historical cost of accounting model. Among other differences, net investment income under the market value financial reporting model does not generally include the effect of rent normalization under FASTB 85-3,cost-based depreciation or amortization of most capitalized expenditures, or impairm

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