please answer the two questions

1.2 The Statement of Principles identifies the elements of financial statements. The measure- ment basis which is applied to these elements can significantly affect the reported financial performance and financial position of a company. Requirements (a) Identify the two main measurement bases used in financial reporting and explain how each should be applied in practice. (8 marks) (b) Explain the impact that subsequent remeasurement of elements of financial statements can have on reported financial performance and financial position. (7 marks) ICAEW, Financial Reporting, September 2001 (15 marks) 1.3 The Statement of Principles deals with the presentation of financial statements i.e. disclosure in primary statements and supporting notes. Requirements (a) Discuss the purposes and usefulness of the information on financial position and per- formance disclosed in published financial statements. (10 marks) (b) Provide a brief explanation of two inherent limitations of financial statements