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If we look at a reporting entity's balance sheet we will see a total given for all the entity's assets (this is a requirement of AASB101). This aggregate total is derived by adding together the various classes of current and non-current assets. Do you think it is appropriate that the various classes of assets are simply added together, even though they have probably been measured on a number of quite different measurements bases? (Deegan, 2010)
What does the aggregated total actually represent? Justify your answer by giving examples
(e.g. inventory valuation AASB102 and property, plant and equipment AASB116).
What alternative/s would you recommend?
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