Explain Why There Is No One Single Measurement Basis That

question 95

Essay

Explain why there is no one single measurement basis that is suitable for all financial assets. Does this mean that a company can choose any measurement base for any investment?

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Definitions:

Enforceable

Refers to a rule, obligation, or agreement that can be legally imposed or carried out.

Illegal Contract

An agreement that is void and unenforceable by law due to its illegal subject matter or terms.

Legislation

The process of making or enacting laws.

Void

A term describing a legal document that is null and has no legal force or effect.