Question
Question 3 - 4 marks (750 words) The IASB conceptual framework (2014) does not provide any detailed prescriptions on the issue of measurement. In recent
Question 3 - 4 marks (750 words) The IASB conceptual framework (2014) does not provide any detailed prescriptions on the issue of measurement. In recent years however, accounting standards have shifted away from the use of historical costs in favour of fair values. Why do you think this shift has been happening? Why do you think that conceptual frameworks are yet to clearly stipulate an alternative to historical costs, such as fair values? Answering Q3 The purpose of Q3 is to demonstrate your knowledge of the main accounting measurement bases and their link to users of accounting information. First you are required to discuss the reasons behind shift away from HCA to FVA. Finally you are required to comment on the conceptual frameworks not stipulating FVA as an alternative HCA
As an overall plan, a quality response will: 1. Demonstrate the link between measurement bases and users of general purpose financial reporting 2. Outline the reasons behind the shift away from HCA to FVA 3. Discuss why the Conceptual Framework does not clearly stipulate the alternatives to HCA
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started