I am looking for any helpful information; web sites; etc. to help me
answer the following question.

Assets have always been recorded at cost.  When assets are purchased
at different times, say buildings purchased in 1960, another in 1980,
and a third in 2000, you have assets that were purchased in different
"dollars."  A dollar in 1960 isn't the same as a dollar in 1980 or
2000.  Does this distort the balance sheet?  What should be done to
have financial statements more accurately reflect the reality they are
supposed to represent?

Boobee --

I saw your question but have another locked and it would be impolite
to other Google Answers researchers to lock a second one, so a comment
is most appropriate.

Use the search term "replacement cost accounting" and you'll find
excellent references to what you're seeking, including this
bibliography:
http://www.maaw.info/ReplacementCostArticles.htm

Best regards,

Omnivorous-GA