The money measurement convention states that "only items capable of being measured in monetary terms are reflected in financial statements". This means, for example, that the skills of the labour force are not included.
Which of the following would be included as an asset on a business’s statement of financial position?
a) A chief executive who has a three-year contract
b) A university lecturer on a three-year contract
c) A television star with a three-year contract to appear in Coronation Street
d) A professional footballer signed at a considerable fee on a three-year contract.