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The diverse measurement methods developed for different types of assets suggest that standard setters are confused about the nature of the attribute that is to be calculated.
Required:
a. Why has measurement become such a controversial accounting issues in recent times?
b. Why is measurement so important in accounting?
c. Illustrate the arguments for and against using fair value as a measurement base.
d. Identify factors that will influence the selection of measurement approach. Show how the measurement approach adopted impacts on the quality of accounting information produced.
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