Discuss issues in accounting measurement. The work is to be 9 pages with three to five sources, with in-text citations and a reference page. izations in making their financial statements among other things, they are viewed as problematic because most of them have to be derived (Neely, 2007, pg. 98). An analysis done with regards to the International accounting Standard Board shows that the use of fair measurement base in financial accounting is likely to increase. The increase of using the fair value as a measurement best will help in the transformation of the way assets including intangible assets and liabilities are measured.
Financial accounting measurements are recorded at historical or adjusted cost to the market values through adjusting entries. Management accounting uses measurements to help in calculating the number of labour hours needed or the cost of materials used to produce goods and services. When determining management accounting measurements accountants use special cost allocation methods such as standard costing, job process costing or Activity-based costing. There is no specific method that is used by accountants as the measurements depend on the entity and how they conduct their business. Therefore, accountants determine the best accounting measurement method by identifying and reviewing each production procedure and breaking down the procedures into allocation drivers.
Measurement accounting is a continuous or never ending process make it relevant in accounting for its users because each day there are new standards that are set by the ISAFB and FASB. Additionally, it is an evolutionary process because different bodies use different practices in the world for their external financial reporting. By so doing, they use different approaches to measurements in that, different jurisdictions have developed their financial reporting requirements that are influenced by the differences in the uses made for financial reporting information found in regulation and business environments.