Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas A1 and A2, respectively. The volume flow rate into tank 1 is qi. A pump is connected to the bottom….
Explain why AASB 1056 requires a different approach to the existing standard AASB 116.
1.‘The requirement of AASB 1056 to measure most assets at fair value is a departure from
the approach adopted in other accounting standards where several measurement bases
are allowed.’ Explain this statement and provide two examples to illustrate your
explanation. 2. A company that has elected to use the revaluation measurement base for its property in accordance with the requirements of AASB 116 ‘Property, Plant and Equipment’
recognises any revaluation increments in ‘other comprehensive income’. In contrast, a
superannuation entity complying with AASB 1056 is required to recognise revaluation
increments on its property in the income statement.
Explain why AASB 1056 requires a different approach to the existing standard
AASB 116. (