In accounting in Australia the most common measurement basis used is:
A) historical cost.
B) realisable value.
C) present value.
D) current value.

Question

Quizplus · Accepted Answer

Historical cost is the most commonly used measurement basis in Australian accounting. Under this method, assets are recorded at their original acquisition cost, and this cost is used until the asset is disposed of or sold. This method provides reliable and objective information and is also easy to implement. Additionally, under Australian accounting standards, some specific assets such as property, plant, and equipment must be valued at their historical cost. Therefore, historical cost is the best choice for measuring assets in Australian accounting.

In Accounting in Australia the Most Common Measurement Basis Used