Bello & Sons purchased land in 2010 for ₦5,000,000. By 2023, the market value of the land had risen to ₦18,000,000. The land is still recorded at ₦5,000,000 in the books. Which accounting concept justifies this treatment?

The historical cost concept requires that assets be recorded and reported at their original purchase price (cost) rather than their current market value. Therefore, the land remains in the books at ₦5,000,000 despite the increase in market value. This concept provides objectivity and verifiability in financial reporting, though it may not reflect current economic reality.