Conceptually, you might have thought that all assets should be measured in the same way, for example, at fair value or at cost, but this is not the case as measurement rules vary depending upon the type of asset in question.’ (Deegan, C. 2012, Australian Financial Accounting, Ed. 7E, p. 143)
- Describe what you understand by the above statement and explain briefly the alternative asset measurement approaches using examples from your selected annual report.
- Discuss and describe two IASB / AASB accounting standards and the asset measurement approaches suggested and the application to your selected annual report.
- With regard to your chosen standards, and in the context of your company annual report, comment on the asset measurement approaches that have been adopted.
(Groups must select a company from the Australian Securities Exchange (ASX) website and download the 2014 annual report. No one is allowed to do the same company and should discuss their selection with their tutor prior to commencing their research essay. No banks allowed as they have particular reporting requirements).