Final answer:
Property, Plant, and Equipment (PPE) under ASPE are carried on the balance sheet at historical cost, which is reduced by accumulated depreciation. The correct answer is A) Historical Cost.
Step-by-step explanation:
Under the Accounting Standards for Private Enterprises (ASPE), Property, Plant, and Equipment (PPE) are carried on the balance sheet at their historical cost.
This cost includes the price paid to acquire the asset, plus any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Over time, the historical cost is then reduced by accumulated depreciation to reflect the use and wear and tear of the assets. Therefore, the correct answer to the question is A) Historical Cost.
ASPE does not typically allow PPE to be recorded at fair market value or replacement cost as part of the normal accounting process. Revaluation of assets to fair market value can only occur in specific situations and is not the standard practice under ASPE. However, if under certain circumstances, the asset's carrying amount is not recoverable, an impairment loss would be recognized, bringing the asset's carrying amount to its net realizable value.