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chapter 6 of the Conceptual Framework there is a description of different measurement bases (historical cost and current values), the information that they provide and their advantages and disadvantages. Current value is newly introduced into the Conceptual Framework as it is widely advocated in academic literature. The framework does not provide detailed guidance on when a particular measurement basis would be suitable because the suitability of particular measurement bases will vary depending on facts and circumstances.

Briefly outline the following

: (i) What is current value as stated in the Conceptual Framework? (2 marks)

(ii) Identify one argument for the mixed measurement approach. (3 marks)

Use the following information to answer parts

(iii) and (iv) XYZ Ltd is based in Fiji. It owns and trades shares in several other companies, some of which are listed on international stock exchanges. In addition, the company owns shopping malls and hotels across the Pacific.

(iii) Lena White owns 20% of XYZ Ltd. Explain whether she would prefer the company to report its investments (including the shares and properties) at historical cost or current values. (5 marks) (iv) In the context of COVID-19, explain whether XYZ Ltd would prefer to report its investments (including the shares and properties) at historical cost or current values. (5 marks)

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