By permitting some classes of assets to be valued at cost and others at fair value the AASB has:

1. removed any confusion regarding the total balance of non-current assets.

2. forced entities to accurately reflect their true financial position at any point in time.

3. created a situation where the total asset figure may be a combination of cost and fair value assessments, reducing its meaningfulness.

4. removed the opportunity for managers to act in their own self-interest as suggested by Positive Accounting Theory.