Research Project Reports (continued from the previous day)

Date recorded:

Extractive Industries

This research project is being led by Australia. The NSS representatives noted a wide divergence of accounting practices around the world and generally felt that the IASB should begin to address the issues in the near future. The Board noted that the extractive industries project is on its agenda of the Board's April 2003 meeting (to be held next week).

Measurement Objectives

This research project is being led by Canada. The IASB discussed a draft of the research paper during its March 2003 Board meeting (March 2003). The paper addresses, among other things:

  • Measurement criteria
  • Relevant provisions of the IASB Framework
  • Limitations of the Framework
  • Recent developments
  • Special measurement issues that arise at initial recognition of an asset or liability.
  • Tterminology and definitions

Among the points raised by the NSS representatives:

  • Canadian Accounting Standards Board staff should review the definitions of replacement cost and historical cost of a liability.
  • Add a definition of exit value and entry value (further research is needed).
  • Develop a clear hierarchy of measurement bases.
  • Consider special measurement issues for self-constructed assets.
  • Consider special impairment measurement issues.

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