A company must record its business activities so it can summarize the information and produce reports. In this lesson, you will learn about the monetary measurement concept.
Why are there published standards for building area measurement? They are also fundamental to landlords and facility managers ability to benchmark operating costs per square foot. Published standards are well documented and their terminology and application are generally well understood within the industry, permitting clear and understandable communication.
Should I cite a published building area measurement standard for doing area calculations? However, if you cite a standard, you become committed to following it. At a minimum, obtain a current copy of the standard and fully understand Money measurement concept application or employ someone who does.
Can I make up my own measurement method? Documenting a custom building area measurement standard that adequately addresses the same scope of generic conditions addressed by published standards requires time, expertise and funding that is beyond the capability of most smaller developers and building managers.
However, a standard written for a particular building can be very simple. Several large developers, property management firms and corporations have developed their own private measurement standards. Which published measurement standard should I use to measure space?
This depends upon the market in which the property is located and the purpose of the measurement. The The recently introduced BOMA Industrial Standard is expected to likewise dominate in industrial facilities, replacing the AIR standard which was for 11 years the only published industrial measurement standard.
See more details elsewhere on this web site. Who should do building area measurements? Architects are generally the most qualified to determine building area measurements by virtue of their knowledge and tools. However, care should be taken that the specific personnel employed by the architectural firm have expertise in applying the measurement standard being used.
Measurement standards are not taught in architecture schools or covered in architectural licensing exams. Should building area measurements be certified? Tenants, lending institutions and insurance companies, sometimes require certified building area measurements.
Certification is a contractual term that gives the certificate holder additional legal remedies beyond those offered by normal errors and omissions such as recourse against intentional misstatements.
Certification is meaningful only if there is recourse, which generally requires applicable insurance on the part of the certifier.
Who should certify building area measurements? There is no statutory authority in any state that sets standards for who can or cannot certify building area measurement. The certificate holder must rely upon the skills, reputation and assets including insurance of the certifying firm or individual.
Architects professional errors and omissions insurance generally covers negligence and errors within the limits set by the normal standard of architectural practice, but excludes coverage for certifications, which is why architects frequently refuse to certify area calculations.
Qualified firms that have contractual liability coverage, like Building Area Measurement LLC, offer more meaningful certification when it is required. Whatever specific modifications are made must be carefully described and documented along with the citation of the BOMA Standard.
This same principle applies to modified applications of other standards.
Should I physically measure the premises, or is it good enough to measure area using construction documents? All buildings have construction tolerances that vary by building age, construction type, contractor skill and other factors.
Consider construction tolerances along with the lease rate to determine the likely financial impact of post-construction field measurement of building areas. If the space is built, it is usually best to check at least the most significant dimensions to avoid surprises.
Can I scale building areas off floor plans, or is more documentation required? Floor plans prepared for construction are technical documents meant to indicate relationships between building systems.
Floor plan are often schematic, and many relevant detail dimensions, such as the location of the inside face of exterior glazing, are shown on detail drawings elsewhere in the construction documents. For this reason, area measurements prepared only from plans, without reference to other parts of the construction documents, or field dimensions, can be inaccurate.
A full set of architectural and structural construction or as-built documents is the normal minimum set of documents required to perform accurate building area measurements. Lacking this, field dimensions of major significant dimensions are highly recommended for accurate measurements.Accounting concept stands on 4 basic ones and money measurement concept is one of them.
money measurement concept state-. “ Any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the records.”. 4 Measurement-7 What is Measurement?
Measurement is the assignment of numerals to objects or events according to rules. • Numerals are labels that have no inherent meaning, for example zip codes, or automobile license plates. • Numbers are numerals that have quantitative meaning and can be analyzed, for example, age.
Under the monetary measurement concept, a company can only record business transactions if they can be valued in monetary terms. A company can't record items that it can't put a dollar value on. Money Measurement Concept in accounting, also known as Measurability Concept, means that only transactions and events that are capable of being measured in monetary terms are recognized in the financial statements.
The recognition criteria defined by IASB and FASB require that the elements of financial statements (i.e.
assets, liabilities, . l explain the meaning and significance of various accounting concepts: Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Duality Aspect concept, Realisation Concept. The ResiScope II is a unique system able to measure Resistance over 10 decades with a high sensitivity and resolution.
It can be combined with several dynamic modes as MFM/EFM or KFM single‐pass (AC/MAC III) providing several sample characterization on the same scan area.