The AASB Framework Allows Use of Different Measurement Basis for Similar

question 42

True/False

The AASB Framework allows use of different measurement basis for similar assets as long as this is disclosed in the summary of accounting policies adopted in the notes to the accounts.

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Definitions:

Payment Plan

An arrangement between a seller and a buyer that allows the buyer to pay off a purchase over time in instalments.

Marginal Benefit

The extra pleasure or benefit derived from acquiring or making another unit of a product or service.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both private costs and externalities.

Garbage Disposed

The act of getting rid of waste materials generated from personal or commercial activities.