...The concept of relevance in accounting is that any information should be relevant to form a decision by the user. The relevance concept emphasizes more on the importance and utility of the information at the end of the financial user to evaluate, compare, or make a future prediction.

In my opinion, amounts reported by U.S companies for property, plant, and equipment is more relevant than the current cost amounts reported by companies in England, Mexico due to the following reasons:

• It is easy to estimate the salvage value of property, plant, and equipment

• Easy to charge depreciation against property, plant, and equipment

• Easy to conduct comparative analysis