Measurement is the process of determining the monetary amount at which an item is recognized in the financial statements of an entity. According to the conceptual framework for financial reporting, measurement refers to the process of determining the monetary amounts at which the elements of financial statements are recognized and reported.

There are different measurement bases that can be used to measure the elements of financial statements, including:

1. Historical cost: This is the original cost of an item, and is the most commonly used measurement basis in financial reporting.
2. Current cost: This is the amount that would be required to replace an item with a similar item in the current market.
3. Fair value: This is the amount at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.
4. Realizable value: This is the amount that an entity could receive from the sale of an asset or the settlement of a liability.

The choice of measurement basis will depend on the specific circumstances of the entity and the item being measured. In some cases, multiple measurement bases may be used for different items within the same financial statements.

Overall, measurement is an important aspect of financial reporting, as it allows entities to provide users with relevant and reliable information about their financial position and performance. By using appropriate measurement bases, entities can ensure that the elements of their financial statements are recorded and reported in a consistent and meaningful manner.

Here is an example of measurement:

Let's say a company purchased a piece of equipment for $10,000, and has been using it for 3 years. The equipment has an estimated useful life of 5 years, and a residual value of $2,000.

To measure the equipment on the statement of financial position, the company could use the historical cost model, which measures the equipment at its original cost less accumulated depreciation. The accumulated depreciation is calculated as follows:

Depreciation expense = (Historical cost - Residual value) / Useful life

Depreciation expense = ($10,000 - $2,000) / 5

Depreciation expense = $1,600 per year

Accumulated depreciation = Depreciation expense x Number of years used

Accumulated depreciation = $1,600 x 3

Accumulated depreciation = $4,800

To measure the equipment on the statement of financial position, the company would record the following:

Equipment (asset) $10,000

Accumulated depreciation (contra-asset) $4,800

Net equipment (asset) $5,200

In this example, the equipment is measured using the historical cost model, and is measured at its original cost less accumulated depreciation. This measurement basis provides users with information about the cost of the equipment, and the amount of its useful life that has been used so far.

It is important to note that different measurement bases may be used depending on the specific circumstances of the entity and the item being measured. However, the principles of measurement outlined in the conceptual framework generally apply to all financial reporting frameworks.