The diverse measurement techniques developed for different types of assets suggest that standard setters are confused about the nature of the attribute that is to be measured.

Required: 

a. Why is measurement in the context of accounting so important?

b. Why has measurement become such a controversial accounting issues in recent times?

c. Explain the arguments for and against using fair value as a measurement base.

Answer rating: 100% (QA)

Solution a Measurement is crucial to be able to provide decision useful accounting information and to accurately appraise the performance of management These are the primary purposes for which financi... View the full answer