Refer to the Article ICAEW (2011) 'Measurement in financial reporting - information for better market initiative' Financial Reporting Faculty, icaew.com/bettermarkets.
Write a critical comments report on the above article by focusing on the following points:
Why has accounting measurement become a controversial issue in the recent? Debate in financial reporting? In recent years accounting standards have been released, which have shown a movement away from historical costs and a movement towards fair values. Why do you think this is occurring? Further, why do you think that conceptual frameworks have not been amended to stipulate an alternative historical cost - such as fair values??Compare and contract measurement choices, explain in your own words the impact of wrong choices of measurement for an organization.