Asset Measurement, and Accounting Policies and Standards

If we look at a reporting entity?s residual flat solid we will see a contribute apt(p) for tout ensemble the entity?s assets (this is a requirement of AASB101). This aggregate total is derived by adding together the various classes of current and non-current assets. Do you deliberate it is appropriate that the various classes of assets are simply added together, even though they have probably been mea sure enoughd on a shape of quite different measurements bases?INTRODUCTIONAASB requires the reporting entities to include balance sheet in their annual report. The objective of balance sheet is to pass on info for internal and external users. ingrained users like managers, owners sewer use the information in the balance sheet to be about their financial position at the current prison term and to evaluate how they can go forward in the future. Internal users are interested to live on the total net assets the entity has at the current time.

External users like creditors, suppliers etc are willing to know how much the total value of the net assets is at the moment. They extremity to know the size of the business, whether it is reliable or not, whether the investment in the entity would be profitable or not.

Therefore relevance and reliability are must considerations when preparing a balance sheet.

According to proceed department of Treasury, when a balance sheet is presented, it should contain subtotal for all the assets, liabilities and other particulars. (Retrieved on April 14, 2009 from the ACT Department of Treasuryhttp://www.treasury.act.gov.au/). This is to make sure that value of total current assets and total non-current assets can be observed very easily. This is in alignment with the pro prescript perspective where free-riders get have the access to financial information of reporting entities for free.

MEASUREMENT OF VARIOUS CLASSES OF ASSETSAsset in balance sheet section includes...

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