ACCA FR · Chapter 1 · Question 4 of 10
The Conceptual Framework describes several measurement bases. Which of the following is NOT a current value measurement basis?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Historical cost
Explanation
The Framework splits measurement bases into historical cost and current value. Current value bases are fair value, value in use for assets (fulfilment value for liabilities) and current cost. Historical cost reflects the price of the transaction that gave rise to the item and is not updated for changes in value.
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