Each question in this quiz is timed.
Definitions of Measurement in CF
Measurement is the process of quantifying, in monetary terms, information about an entity’s assets, liabilities, equity, income and expenses.
A measure is the result of measuring an asset, a liability, equity or an item of income or expense on a specified measurement basis.
A measurement basis is an identified feature of an item being measured (for example, historical cost, fair value or fulfilment value).
Applying a measurement basis to an asset or a liability creates a measure for that asset or liability and for any related income or expense.
using information derived from the transaction or event that created them
do not reflect changes in prices
do reflect changes such as the consumption or impairment
Give the definition historical cost?
using information that is updated to reflect conditions at the measurement date
current values capture any positive or negative changes
Give the definition current value?
in estimates of cash flows and other factors
value in use for assets and fulfilment value for iabilities
Current value measurement bases include?
fair value
value in use for assets and fulfilment value for liabilities
significant downward adjustment of Recoverable Amount
downward adjustment of Recoverable Amount
What is the difference in historical cost-based values vis-ávis fair value-based values with regards to financial reporting?
Boekwaarde neemt naarmate de tijde verstrekt af doormiddel van afschrijving of impairment.
Fair value wordt gemuteerd gebaseerd op de marktprijs die geldig is op de balansdatum. Fair value kan dalen of stijgen.
Fair value is betrouwbaarder dan historische kostprijs