Explain the arguments for and against using fair value as a measurement base.

The diverse measurement techniques developed for different types of assets suggest that
standard setters are confused about the nature of the attribute that is to be measured.
a. Why is measurement in the context of accounting so important?
b. Why has measurement become such a controversial accounting issues in recent
c. Explain the arguments for and against using fair value as a measurement base.
d. Identify factors that may influence the choice of measurement approach. Discuss
how the measurement approach adopted impacts on the quality of accounting
information produced.
Provide reasons to support your position on the above.
Additional information
Assignments must not exceed the word counts indicated.
Your assignment must include an abstract/synopsis, introduction, essay body that clearly
addresses the problem areas, a conclusion and a properly referenced (refer to the research
essay marking guide for further guidance).
Evidence of extensive research beyond the prescribed text is required. Ensure these are
referenced. Refer to the University of Ballarat’s policy on plagiarism.
NO extensions will be granted unless supported by appropriate documentation prior to the
due date.
The group assignment is due in week 10. Assignments that are submitted late will be
penalised at the rate of 10% per day. The lecturer, in the evaluation of the group submission
and each individual’s contribution, may require any or all of the members of the group to
discuss various aspects of the assignment