The measurement of assets and liabilities on the balance sheetwas previously a secondary goal...

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Accounting

The measurement of assets and liabilities on the balance sheetwas previously a secondary goal to income determination. As aresult, various measurement techniques arose to disclose assets andliabilities. Required: Discuss the various measurement techniquesused on the balance sheet to disclose assets and liabilities.

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Various Measurement techniques used on the balance sheet to disclose assets and liabilities Sno Asset Measurement Basis 1 Cash Current Value 2 Inventory Current or past value 3 Accounts Receivable Expected Future Value 4 Property Plant Equipments Past value adjusted for depreciation 5 Investment Fair Value amortised cost or the result of applying the equity method 6 Marketable securities Fair Value or amortised cost 7 Longterm financial liabilities amortised cost When looking at the differences investors need to be aware that using the balance sheet to evaluate the companys financial status should be looked at individually as each asset is completely different The way information is presented for the expected future benefits to be consequent from holding these assets would be more beneficial to the users need 1Cash These include demand deposits with banks and highly liquid investments with See Answer

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In: AccountingThe measurement of assets and liabilities on the balance sheetwas previously a secondary goal to...The measurement of assets and liabilities on the balance sheetwas previously a secondary goal to income determination. As aresult, various measurement techniques arose to disclose assets andliabilities. Required: Discuss the various measurement techniquesused on the balance sheet to disclose assets and liabilities.