Advance Issues In Accounting

1743 WordsJan 31, 20187 Pages
Advance Issues In Accounting Introduction Accounting is the art of measuring and communicating financial information. To maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules or principles are classified as concepts and conventions. One of the important concept in accounting is “Measurement” (Mattessich, 1977) The IASB Framework states: “Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement. This involves the selection of the particular basis of measurement.” (Measurement Bases for financial accounting, 2005) Measurement is the quantification of financial information in dollars or units. Accountants use these measurements to report information to internal and external users with the help of financial statements. The measurement of monetary properties in scale of numbers of monetary units enables the result to be used in a wide variety of contexts at any given time. Several elements are bought together in the measurement process. A simple measure of this type, such as a count of cash, depends on the several factors: • The object itself • The attribute being measured • The measurer • Enumerating operations • Instruments available for measuring task • Constraints affecting the measurer. (Wolk) The usefulness of financial statements
Open Document