The choice of the measurement model to be used in Financial Statements has always been particularly complex and controversial within the academic community, standard setters and practice. In a recent speech, the Chairman of IASB, emphasized: ‘[…] I was struck by the multitude of measurement techniques that both IFRSs and US GAAP prescribe, from historic cost, through value-in-use, to fair value and many shades in between. In all, our standards employ about 20 variants based on historic cost or current value.’ Hans Hoogervost, Chairman IASB (20 June 2012). It is expected that neither fair value nor historical cost are likely to be both wholly relevant and reliable and that there is often a trade-off between the two. In practice, which measurement method, historical cost or fair value would provide the ‘best’ accounting information?

argues in support of reliability (faithful representation) and historical cost measurement method.