When the International Accounting Standards Board (IASB) was instituted in 2001, it adopted many of its predecessor's regulations, most noticeably the 1989 Framework for the Preparation and Presentation of Financial Sfatements.The Framework is increasingly out-of-date given the complex and shifting nature of financial reporting. For example, in relation to the valuation of assets and liabilities, the Framework lists the available options (historical cost, replacement cost, net realisable value, and present value), but fails to recommend the preferred measurement technique. The Framework was written in an era when there was a search for a single value-based model of income and thus there is no formalrecognition of a 'mixed measurement' system.
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