This paper explores the concept of measurement in financial reporting, focusing on its importance and application in the case of Caltex Australia Ltd. It discusses the essential measurements of assets and liabilities, including inventories, plant and equipment, trade payables, and provisions. The paper also examines the qualitative characteristics of AASB and Caltex's measurement practices. Overall, it provides insights into the accounting standards followed by Caltex and their impact on financial statements.