In accounting for physical fixed assets, the use of 'cost' as a valuation basis is well established.

You are required to outline the difficulties that arise in applying the cost principle, and to justify the solutions normally adopted, in cases where:

(a) physical fixed assets are acquired OTHERWISE THAN for a single cash payment (or on short-term credit) with IMMEDIATE transfer of the legal title to the assets; and

(b) more than one separately identifiable item of physical fixed assets is acquired in the same transaction for a global sum of money, or for other valuable consideration that cannot be precisely apportioned.