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Conceptual framework

Date recorded:

Conceptual Framework - Agenda paper 10

The IASB will continue its discussion of the comments received on the Conceptual Framework exposure draft (the ‘CF ED’). The topics for this meeting are as follows:

  • Whether the appendix on ‘cash-flow-based measurement techniques’ should be retained (AP 10B);
  • Review of existing Standards for potential inconsistencies with the revised CF (AP 10C);
  • Effects of the revised CF (AP 10D);
  • Minor comments on concepts supporting asset and liability definitions (AP 10E);
  • Due process (AP 10F).

In addition, the tentative decisions made to date are summarised in AP 10A.

The redeliberation of the CF ED is entering the final stages. None of the papers for this meeting includes any technical discussions - they relate mostly to housekeeping matters.

The Staff intends to discuss the following topics in the March 2017 Board meeting: (a) transition to the forthcoming amendment to paragraph 11 of IAS 8 for rate-regulated activities; (b) due process steps for updating references to the Framework for the Preparation and Presentation of Financial Statements and related quotes in Standards.

Conceptual Framework – Measurement - Appendix A: Cash-flow-based measurement techniques - Agenda paper 10B

Feedback from respondents and Staff analysis

Appendix A to the CF ED clarifies a number of points that need to be considered when developing a cash-flow-based measurement technique. Four respondents believed that the appendix should not form part of the CF since it addresses practical rather than conceptual issues. Another respondent believed that the discussion in the appendix is incomplete.

The Staff believes that the appendix provides useful explanations on various issues and that expanding it would make the discussion unnecessarily complicated.

Staff recommendation

The Staff recommends retaining the appendix subject to drafting changes.

Conceptual Framework – Review of existing Standards for potential inconsistencies with the revised Conceptual Framework - Agenda paper 10C


This paper is for information purpose only.

The CF ED already includes a discussion of the inconsistencies between the Standards and the revised CF. Feedback received on the ED has prompted the Staff to analyse potential additional inconsistencies identified by the respondents. Appendix A to the paper sets out the Staff’s response to those purported inconsistencies.

The Staff concludes from their analysis, including a review of the newly issued Standards and amendments since the publication of the ED, that no substantive inconsistencies are noted in addition to those discussed in the ED.

Conceptual Framework - Effects of the revised Conceptual Framework - Agenda paper 10D


This paper summarises the work performed by the Staff in assessing the effects of the revised CF during redeliberations of the ED, which covered the following areas:

  1. The effects of the proposed definitions of assets and liabilities;
  2. The effects of the revised CF for preparers; and
  3. Potential additional inconsistencies between the Standards and the revised CF identified by the respondents.

All these topics have been discussed by the Board previously where tentative decisions have been made (point 3 will be discussed in the current meeting – see AP 10C). No additional discussion is presented in this paper.

The Staff will ask the Board whether it is satisfied with the additional work performed.

Conceptual Framework - Minor comments on concepts supporting asset and liability definitions—Agenda paper 10E


This paper proposes various minor drafting changes on concepts supporting the asset and liability definitions in response to comments received on the ED.

The Staff will ask the Board to raise any specific matters for discussion.

Conceptual Framework - Due process summary for the Conceptual Framework for Financial Reporting—Agenda paper 10F


This paper summarises the project history and the due process steps undertaken by the Staff in developing the revised CF.

Staff recommendation

The Staff will ask the Board for permission to ballot, and recommends that the Board and the IC start using the CF as soon as it is issued (i.e. it is effective upon publication).

Correction list for hyphenation

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