“In a realistic market setting, the search for a universal measurement method may be fruitless and
more appropriate approach to the measurement problem might be how to define a clear
measurement objective and to select the measurement method that best meets that objective in the
particular circumstance…” (p.139)
This statement implies that there is a suitable measurement approach for potentially complex
But Dillard (1991, p.9) states:
“Accounting is a technology, but it is not a technology that is ideologically sterile. The ‘axioms, laws,
etc. are not based on observed phenomena, as purportedly is the case in the physical sciences, but
emanate from the social sphere. For accounting, in spite of its objectivity, there are no “physical
absolutes” upon which to base, and verify, the technology. The framework is a social construction.
The technology is framed by ideology. The interpretation of events, and even the specification of what
constitutes an event, are functions of the socio-political point of view.”
i) Based on the above statements, write an essay on the relevance of fair value accounting
in the contemporary world. Highlight whether fair value accounting is applicable to a wide
range of private and public sector organisations in corporate reporting.
ii) Explain what is meant by Dillard’s (1991) statement, “The framework is a social
iii) Discuss whether, in your opinion, AASB13 is an objective representation of reality or a
function of a socio-political point of view.
ACC202 Corporate Accounting PIA S1 2020 Major Assignment Question
Part B: Case study
You are required to download Virgin’s 2019 annual report (address provided above) and identify the
required information from the notes on fair value disclosures. Discuss how the company’s fair value
disclosures are made. In your presentation, you need to identify and report on fair value hierarchies,
tiers, and methods used for differing classes of assets. Marks will be awarded for accuracy as well as
clarity and organisation of material.