In relation to measurement of the elements of financial statements
A) The Framework acknowledges that a variety of measurement bases are used to different degrees and in varying combinations in financial statements.
B) The Framework includes detailed concepts and principles for selecting which measurement basis should be used for particular elements of financial statements.
C) Net realisable value is the preferred basis for measurement of assets.
D) The Framework adopts a mixed attribute accounting model

Question

Quizplus · Accepted Answer

The Framework does acknowledge that different measurement bases are used in financial statements, and does not prescribe one specific method for all elements.

Answer: D
 The Framework does adopt a mixed attribute accounting model, which allows for different measurement bases to be used for different elements based on the characteristics of those elements.

Therefore, the best choices are A and D. B and C are incorrect as the Framework does not provide detailed concepts and principles for selecting the measurement basis, and net realisable value is not the preferred basis for measurement of assets.

In Relation to Measurement of the Elements of Financial Statements