Nevertheless, the path the standard-setters have chosen is one where big swings in balance sheet and income

Question:

Nevertheless, the path the standard-setters have chosen is one where big swings in and income statement numbers are inevitable. As a consequence, users of financial reports will need clear distinctions to be made between objective and subjective figures, between realised gains and losses, gains and losses based on real market process, and gains and losses based on hypothetical calculations.
Required:
Discuss how AASB 13 attempts to overcome these issues when providing information to users of financial reports.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...