Distinguish between the operating-profit, all-inclusive and comprehensive income approaches to profit measurement. – Essaylink
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Free Inquiry1.(a) ‘It is clear that the matching concept is no longer pre-eminent in the measurement of
profit.’ Discuss.
(b) What criteria would you use to evaluate possible approaches to periodic profit
measurement? Explain. (LO1)
2. Distinguish between the operating-profit, all-inclusive and comprehensive income
approaches to profit measurement. (LO1)
3 What are the arguments for and against the all-inclusive approach to profit measurement?
4 Outline arguments against an operating-profit approach to periodic profit measurement.
5 What approach to profit measurement has the International Accounting Standards Board
adopted? Why? Explain why you agree or disagree with their choice. (LO2)
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