Theoretical Discussion - Asset Measurement

There has been a general tred for accounting standard setters to issue accounting standards that measure assest at 'fair value'. Other valuation approaches including cosy, net realizable value and present value are also required for particular classes of assests and liabilities as stipulated by particular accounting standards. Thus, we have a 'mixed approach' in measuring a company's financial performance and finanical position in Australia.

In light of the above statement, you are required to:

1. Briefly explain the various measurement models mentioned (max. 150 words).

2. Describe two accounting standards that utilize the fair value valuation model (mx. 100 words).

3. From the Australia Security Exchange (ASX) website, select two companies' 2017 annual reports. Identify valution model/s adopted by these companies in measuring their non-current asses (note: please focus on tangible non-current assets rather than intangibles or financial assets) and comment on whether the adoped valuation model/s enchances the information usefulness for the various users of the annual reports, by referring to the qualitative characteristics of financial information defined by the AASB Framework (max. 750 words).