Read the following scenario and choose the assumption that you think applies. Indicate if it has been VIOLATED (not followed) or FOLLOWED. Support your position with your reasons.

A business purchased land for $500,000 in 2009. The current market price of the land, if the business was to sell it in 2018, is $1,000,000. The business is trying to obtain a bank loan and it has therefore recorded the land in the financial statements at $500,000.