Common views from the commentators about accounting measurement / Sharifah Norhafiza Syed Ibrahim

Financial reporting aims at reporting relevant financial
information, useful to users in evaluating present and past
performance of an entity and making informed economic
decisions in allocating economic resources. Despite
significant development in regulating financial reporting
in order to ensure that users are provided with sufficient
level of financial information, many still find it difficult to
interpret the financial information. The main area of
concern is accounting measurement. Most accounting
standards setters agree that accounting measurement is
problematic. As the process of measurement is central to
general purpose financial reporting, the attributes we
choose to measure and the way we go about establishing
the measurements, create images of financial
performance, financial position, liquidity, capacity to
adapt, cash generating potential and so on.