The current trend in accounting regulations in Canada is to provide more fair-value

information on the financial statements as opposed to historical cost information. What is

the rationale for this trend?

a) Fair-value accounting is more work, thus providing job security for accountants.

b) Since the level of inflation is so low in Canada, fair-value accounting provides

significantly different values than historic cost accounting.

c) Since "true" net income does not exist except in the ideal world, fair value

accounting is more verifiable than historic cost accounting.

d) Fair-value accounting is more relevant to the readers of financial information than

historic cost accounting.

e) Fair-value accounting is more reliable to the readers of financial information than

historic cost accounting.