a) Do you agree with a one size fits all approach to financial reporting, that is, that all countries should adopt the same accounting standards and conceptual framework?

Required:

Explain your answer by discussing the arguments in favour of and against the harmonisation

of accounting standards.

(12 marks)

b) One of the issues covered by IFRS 9 Financial Instruments (revised July 2014) is the classification and measurement of financial assets. The three possible measurement bases identified by the standard are:

Amortised cost.

Fair value through other comprehensive income.

Fair value through profit or loss.

Required:

Explain how IFRS 9 requires entities to select the appropriate measurement basis for a financial asset. You should include any options available to entities regarding classification in your explanation.

Note: You are NOT required to define financial asset.

IFRS 9 principle is required to answer this