1.(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)