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ACCA Strategic Professional · Strategic Business Reporting (International) · The applications, strengths and weaknesses of the accounting framework

Which of the following is a current value measurement basis under the 2018 Conceptual Framework, as opposed to a historical cost basis?

Fulfilment value is a current value basis, being the present value of the cash the entity expects to pay in settling a liability. Amortised cost, depreciated cost and cost less impairment all remain historical cost measures because they derive from the original transaction price.

  1. AFulfilment valueCorrect
  2. BAmortised cost
  3. CHistorical cost less accumulated depreciation
  4. DCost adjusted for impairment losses

Explanation

The Framework lists fair value, value in use and fulfilment value, and current cost as current value bases. Amortised cost is a historical cost measure, as are depreciated cost and cost less impairment, since they update the original transaction price rather than reflect current conditions.

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