What is meant by "measuring units current at the reporting date"?

The phrase "measuring units current at the reporting date" specifically refers to recognizing and using the value of local currency that reflects its purchasing power at the time the financial reports are generated. This is particularly important in financial reporting, as it ensures that the monetary amounts reported are reflective of current market conditions and the real economic value of assets, liabilities, and equity.

By using current measuring units, companies are able to present a more accurate picture of their financial situation, avoiding distortions that arise from using outdated values or historical costs, which do not account for changes in purchasing power due to inflation or other economic factors. This approach aligns with the principles of financial reporting that prioritize relevance and reliability of information to stakeholders.

Therefore, the emphasis on using the local currency at its current value at the reporting date ensures that users of the financial statements can make informed decisions based on up-to-date data, enhancing the comparability and consistency of financial information over time.