Measurement involves assigning monetary amounts at which the elements of the financial statements are to be recognised and reported. [F 4.54]
The IFRS Framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including: [F 4.55]
Historical cost Current cost Net realisable (settlement) value Present value (discounted)
Historical cost is the measurement basis most commonly used today, but it is usually combined with other measurement bases. [F. 4.56] The IFRS Framework does not include concepts or principles for selecting which measurement basis should be used for particular elements of financial statements or in particular circumstances. Individual standards and interpretations do provide this guidance, however.
