In chapter 6 of the Conceptual Framework there is a description of different measurement bases (historical cost and current values), the information that they provide and their advantages and disadvantages. Current value is newly introduced into the Conceptual Framework as it is widely advocated in academic literature. The framework does not provide detailed guidance on when a particular measurement basis would be suitable because the suitability of particular measurement bases will vary depending on facts and circumstances.

When attempting this Case Study students may refer to the article Taking a measured approach by Steve Cooper, which you were required to read as part of your perusall reading 1.

Required

Briefly outline the following:

(i) What is current value as stated in the Conceptual Framework? (2 marks)

(ii) Identify one argument for the mixed measurement approach. (3 marks)