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Corporate Accounting and 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.

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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: Why is measurement in the context of accounting so important? Why has measurement become such a controversial accounting issues in recent times? Explain the arguments for and against using fair value as a measurement base. Identify factors that may influence the choice of measurement approach. Discuss how the measurement approach adopted impacts on the quality of accounting information produced. ...

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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: Why is measurement in the context of accounting so important? Why has measurement become such a controversial accounting issues in recent times? Explain the arguments for and against using fair value as a measurement base. Identify factors that may influence the choice of measurement approach. Discuss how the measurement approach adopted impacts on the quality of accounting information produced. Provide reasons to support your position on the above. Additional information Assignments must not exceed the word counts indicated.

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Accounting is classifying and manipulation of financial data for the presentation of financial statements of an organisation.  The financial statements should present a true and fair view of the financial health of the organisation. Therefore, accounting helps in classifying all the assets, liabilities, incomes and expenses in appropriate manner so as to give a true and fair view of the organisation.  Measurement is the means by which values and numbers are assigned to the objects and properties (i.e. assets, liabilities, income and expenses) being valued so that they represent their true values.  Some of the factors on which measurement depend are- The object which is being valued itself, the aspect being measured, the person who measures, listing the operations, tools available for the measuring task and constraints affecting person who measures.

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