Conceptual Framework Phase C — Measurement
The Board discussed a draft chapter on measurement that might form the basis of a joint IASB-FASB discussion paper. The sample chapter very basic; it did not include a basis for conclusions or other supporting material that would be included in an actual measurement chapter. In addition, the staff admitted that it did not include all the topics that the Boards might want to include in the Framework's measurement chapter.
No decisions were asked for or made, but Board members had some overall comments:
- There should be a discussion of measurement as a component of financial reporting; how the various measurement alternatives are assessed with respect to a particular asset or liability; and how measurement related to income and expense determination.
- Board members had concerns that the discussion of measurement of financial instruments might be contrary to the most recent decisions about those items, especially with respect to items that might be measured at amortised cost under the Board's forthcoming proposals on classification and measurement.
- There was no implicit ranking of the measurement alternatives, which would leave a preparer, using the measurement chapter via IAS 8, with no guidance on which of the measurement approaches was most appropriate in a given circumstance.
- The measurement chapter should not import ideas from individual IFRSs; thus rather than referring to 'Level 2' inputs, it should describe what those inputs are.
Overall, the Board thought that the sample chapter was a useful starting point, but that it could be made more succinct and direct.