Essay: Accounting Measurement Concepts and Standards

Sample Essay

Introduction

Measuring the true value of assets and liabilities is the foundation of financial accounting. Hence the accounting regulatory bodies, researchers and academia are equally interested in finding the standard measurement methods (Gassen & Schwedler, 2009).

Economists want to develop a theory that can be used to examine the effects of different accounting measurement notions on investment decisions and stock prices and regularity bodies have the issue of making out accounting measurement standards which provide useful information for a lot of external stakeholders like taxation and auditing departments (Gassen & Schwedler, 2009). So the selection of a right accounting measurement theory is very difficult because of the conflicting demands of various stakeholders like a conflict of interest between shareholders and managers. All these pressures have made the issue more of a political nature (Gassen & Schwedler, 2009). However, there are certain international and local bodies which are trying to formulate uniform standards which are equally accepted and implemented by all the partners.  Among these noteworthy national and international accounting regulatory bodies are the Australian Accounting Standards Board (AASB) and the International Accounting Standards Board (IASB) respectively. All such types of authorities are trying to standardize the rules and regulations of accounting on the basis of best practices and incorporating consent of the concerned parties so that there is homogeneity in recording the financial information (IASB, 2009).

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