Measurement involves assigning monetary amounts at which the elements of the financial statements are to be recognised and reported. The framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including:
§ Historical cost
§ Current cost
§ Net realisable (settlement) value
§ Present value (discounted)
Historical cost is the measurement basis amount commonly used today, but it is usually combined with other measurement bases. The framework does not include concepts or principles for selecting which measurement basis should be used for particular elements of financial statements or in particular circumstances.
No comments:
Post a Comment