Under US. GAAP, property, plant, and equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired. A number of other countries, including Australia, Brazil, England, Mexico, and Singapore permit the revalation of property, plant and equipment, to their current cost as of the balance sheet date. The primary argument favoring revelation is that the historical cost of assets purchased ten, twenty or more years ago is not meaningful. A primary argument against revelation is the lack of objectivity in arriving at current cost estimates, particularly for old assets that either will or cannot be replaced with similar assets or for which no comparable or similar assets are currently available for purchase.
a. Discuss the qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a US company's financial statements. Explain.