3- Measurement is the process of determining the monetary amounts at which the elements of the 
financial statements are to be recognised and carried in the balance sheet and income statement.Assets are carried at the amount of cash or cash equivalents that would have to 
be paid if the same or an equivalent asset was acquired currently.Liabilities are 
recorded at the amount of proceeds received in exchange for the obligation, or in some 
circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to 
be paid to satisfy the liability in the normal course of business.Assets are carried at the amount of cash or cash equivalents that 
could currently be obtained by selling the asset in an orderly disposal.A number of different
measurement bases are employed to different degrees and in varying combinations in financial 
statements.The measurement basis most commonly adopted by entities in preparing their financial statements 
is historical cost(b) Current cost.