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.
d. Identify factors that may influence the choice of measurement approach. Show how the measurement approach adopted impacts on the quality of accounting information produced.