Adjustments to Baseline EP
To determine which adjustments we should make to Baseline EP, we need to explore the effect of management activities upon reported results.
Eleven common measurement issues have been identified within five broad categories. From the general discussion of measurement issues you will be guided to particular adjustments to Basic EP that you should consider.
For each potential adjustment, you are presented a discussion of alternative accounting treatments and their implications for management behavior. You can then select from among those alternative treatments to make the adjustment to Basic EP (or not).
Operate
Invest
Harvest
Finance
Support
Investment in intangible assets
