The process whereby an entity determines the monetary amounts at which the various elements of its financial statements (assets, liabilities, gains, losses, etc.) can be recognized and presented in the statement of financial position (balance sheet) and statement of income (and comprehensive income). There is a set of measurement bases that are commonly used to varying degrees and in varying combinations including historical cost, net realizable value (settlement value), discounted value (present value), current cost, fair value, etc.

The unit of time at which measurement takes place is called a measurement date.