QUESTION 2 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) 2 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. (8 marks) (Total 20 marks) QUESTION 2 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) 2 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. (8 marks) (Total 20 marks)