Question

what is the difference between Money measurements concept and revenues realization concept?​

Answer 1

Answer:

Money measurement concept essentially means that no transaction should be recorded in books of accounts if a monetary value cannot be assigned to it.

For example Skills and competencies of employees serving the organisation cannot be assigned a monetary value to it, and hence should not be accounted for in the books of accounts.

Also, Internally generated goodwill cannot be assigned a cost, as there is no reliable estimate of its value, hence it should not be recorded in books of account. Only purchased goodwill, or goodwill arising out of merger and amalgamation should be recorded as it can be calculated by the excess of consideration paid over the Net Assets taken over.