Question: If the Conceptual Framework had a paragraph inserted that addressed measurement and that paragraph suggested that one basis of measurement, such as fair value, should

If the Conceptual Framework had a paragraph inserted that addressed measurement and that paragraph suggested that one basis of measurement, such as fair value, should be used by all reporting entities for all assets, thereby excluding the use of historical cost, do you think that all reporting entities would simply adopt this suggestion?

Remember, accounting standards take precedence over the Conceptual Framework. What would you see as some of the impediments to standard-setters switching to fair values as the basis for the measurement of all assets?

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Without being compelled to do so it would be unlikely that all reporting entities would use the same measurement basis for assets Where there is a cho... View full answer

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