Measurement Of A Business Is Regarded As A Failure Or A Success

2614 Words11 Pages
To begin with, measurement is an essential part in every human’s daily activity. People apply measurements in Mathematics, in Science, in calculations, in Economics, or in their typical calculation for the simplest estimation of market price when buying any products or services. Measurement’s role in Accounting is by then not any less than a vital role. Indeed, all transactions or assumptions provided in the Accounting Information Systems are presented by numbers, which are results of the measurement process. The issues in relation to Measurement in Accounting are typically broad due to the fact that Theories of Accounting are quite new in the Industry. Directly or indirectly, financial reporting measurements of performance and financial position affect almost everyone. They help to determine whether a business is regarded as a failure or a success, whether its employees earn a bonus, whether they keep their jobs, what dividends investors receive, and how much tax the business pays. In the context of measurement, the aspiration expressed by Sir David Tweedie, the Chairman of the IASB is an appealing one: ‘The real objective is to have one single set of accounting standards, so it doesn’t matter whether a transaction takes place in any part of the world, we’ll account for it the same way.’ First, this Report shall provide a general background on the issue of Measurement. Theorists have indicated the definition of measurement, and in the case of Campbell,
Get Access