ICAEW study on measurement in financial statements
11 Nov 2006
The Institute of Chartered Accountants in England and Wales has published a study on Measurement in Financial Reporting).
'Making the case for change' puts the onus on showing that there is a problem that needs to be solved. In the context of financial reporting measurement this may be the case where:
It should not be assumed that every case of inconsistency in measurement is a problem that needs to be remedied. This report puts forward the following working hypotheses: that it may be appropriate in making decisions on measurement requirements:
'Evaluation of options' should include the option to do nothing. Once the costs of potential changes (including the costs of making the change) have been taken into account and their likely benefits considered, it may become clear that the most sensible policy is to leave things as they are. |