a)The IT manager suggests that the website should be measured at fair value. Describe a different policy (i.e., different from the IT managers suggestion) to account for the website. Your policy must be one that is permitted by Australian Accounting Standards. In answer in part c) you should briefly describe the policy in words and present in tabular form an itemised statement of how to account for the website, including a total. In answering part c) you should NOT consider the disclosure component of the policy and you should NOT attempt to justify the policy because that would just be repeating what you are asked to do in part (d) (ii).

a)Evaluate the alternatives by explaining:

i) why measuring the website at fair value is not consistent with Australian Accounting Standards.

ii) how the policy you proposed in part c) is consistent with the principles identified in part b). In answering this part of the question please explain why items have been included or excluded. State any assumptions that you consider necessary.