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Measurement choices (fair value (Against (subjective where a market price…
Measurement choices
fair value
identifies the actual market value of an asset or liability at the measurement date to overcome the limitations of measuring the actual value of an asset or liability subsequent to acquisition date
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Against
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Assets are measured as if they are all going to be sold off, which is not usually the case
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takes into account objective factors like acquisition/production/distribution costs, replacement costs, or costs of close substitutes.
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deprival value
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the maximum value at which an asset should be stated is its replacement cost as, by definition, the owner can make good the loss arising from deprival by incurring a cost equivalent to replacement cost.