It is the measurement that indicates the costs that must be paid for an asset, the date of its use, its use on the balance sheet date or sale if the asset is not yet possessed. . For example, the current cost of acquiring an entity or the current cost of creating an entity will be used as the current cost of an entity (e.g. inventory). Thus, the current (replacement) cost is more accurate in order to value an asset instead of using the original cost paid for the asset. The advantage of using current cost is that it provides a more reliable measure of the organization's efficiency. Additionally, it divides the profit of an asset into the part that involves holding the asset before selling it. This division shows the results of asset management decisions and their impact on transactions. Additionally, the various holding gains reports allow financial statement users to gain deeper insight into the operational performance of the organization. However, Abu Bakar and Mohd Said (2007) state that current cost tends to be subjective because it is difficult to find the precise current cost.