This study examines the benefits and disadvantages that apply to a range of measurement models that have been used for the purpose of determining the accuracy of the financial information included within a corporation's annual financial statements.
Over the course of the past few decades there has been
considerable discussion and debate regarding international
financial reporting standards (IFRS) and, in particular, the
appropriate measurement models that should be implemented
for use when preparing a corporation’s financial
statements. During this period international accounting
standard bodies have been endeavouring to develop an agreed
standard conceptual framework that is acceptable to all
accounting and regulatory bodies for use in financial
statement, irrespective of the corporation type and its
country of domicile, and one that identifies the items to be
included within the statements and the manner in which these
should be measured (Johnson 2004).