Information produced using deprival value as the measurement base is considered

Question

Quizplus · Accepted Answer

Deprival value, which estimates the value of an asset based on the loss that an entity would incur if it were deprived of the asset, can lead to information that is less relevant, less faithfully represented, and less understandable. This is because it incorporates hypothetical scenarios and subjective estimates, making the financial information more complex and potentially less intuitive for users.

Information Produced Using Deprival Value as the Measurement Base Is