MEASUREMENT OF ELEMENTS

Measurement of liabilities

• Existence :
• Flow of liabilities : market value -> voltality
• Measurement
• Historical Cost
• Current Cost
• Realizable (Settlement) Value
• Present Value Selection of measurement basis depends on relevance and faithful representation.

Measurement of assets

• Existence : right of asset need to be exist
• Flow of asset : economic benefit -> certain/uncertain
• Measurement : principle for recognize, consistency, amount of recognize

-> Liabilities should be measured by MONETARY VALUE