Under current U.S. accounting standards, a company must report the land it owns at its historical cost, that is, exactly what it paid at the time the land was purchased. This is a faithful representation of the original transaction.

However, is this relevant?
What would be a better basis on which to report the land’s value?
What would be the benefits of this basis to financial statement users?
What would be the potential costs to the company?
What parts of the conceptual framework might be better served by this measurement basis?
What parts less fulfilled?