Measurement in the Statement of Financia

One of the most important issues in financial reporting is the measurement of assets and liabilities shown in a company’s statement of financial position (balance sheet). There are two main measurement approaches:

(1) Entry value
(2) Exit value

These approaches are put into practice using a variety of methods, of which the following measurement bases are widely used. Entry value can take the form of measurements based on historical cost and measurements based on replacement cost. Exit value can take the form of fair value measurements, measurements of net realisable value and measurements of value in use (discounted present value of future economic benefits).

For this assignment, you should choose a company that is listed on the Singapore Stock Exchange. Your company should publish its annual report and accounts in English and the most recent annual report and accounts should be accessible on the company’s website.

Court
http://ir.courts.com.sg/financial_results.html/year/2018

(a) For each of the measurement bases identified above, explain how the measurement basis would be applied in practice, and discuss briefly the main strengths and weaknesses of each method.
(b) With respect to your chosen company, identify two classes of non-current (also known as fixed) asset and two classes of current asset shown on the most recently published annual consolidated (group) balance sheet (statement of financial position). For each of the four classes of asset, explain the measurement basis or bases used by the company for the class of asset, and discuss the advantages and disadvantages to the company of using the stated measurement bases.