Hans Hoogervorst, Chairman of IASB commented that the "the IASB was wise not to express a general preference for either historical cost on the one hand or for current measurement, or more specifically, fair value on the other hand. Instead, we acknowledge that in many cases mixed measurement is the expected outcome of our standard-setting".

The revised Conceptual Framework (March 2018) describes what information measurement bases provide and explains the factors to consider when selecting a measurement basis.

Required:

(1) Critically discuss whether different measurement techniques for assets and liabilities

provide useful information to users of financial statements.

(15 marks)

(2) Describe the various measurement basis indicated in the new conceptual framework and discuss the factors to be considered when selecting a measurement basis.