ASBJ submits paper for the ASAF discussion of the Conceptual Framework

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Sep 07, 2016

On September 7, 2016, the Accounting Standards Board of Japan (ASBJ) submitted a paper on 'The Linkage between Financial Performance and Measurement' for the discussion in advance of the upcoming meeting of the Accounting Standards Advisory Forum (ASAF) to be held on September 29, 2016, where members will discuss the question of measurement in the Conceptual Framework.

In the paper, the ASBJ argues two points:

  • As long as the statement of profit or loss is the primary source of information about an entity’s financial performance, the Conceptual Framework should, at a minimum, describe the fundamental characteristics that information about profit or loss should possess.
  • In order to calculate profit or loss that is useful, the measurement basis should be selected appropriately from the perspective of the statement of financial position and from the perspective or the statement(s) of financial performance, respectively. If the measurement basis differ, the difference in the changes in the measurements should be included in OCI.

Please click for access to the full paper on the ASBJ's Web site.

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