Conceptual Framework Phase B — Elements and Recognition

Date recorded:

The Board held a preliminary discussion related to the definitions of elements of financial statements. The Board will continue these discussions at the joint meeting of the IASB and FASB. No decisions were made during this discussion.

The Board also began discussions of the conceptual distinction between liabilities and equity and perhaps between classes of equity. Although no decisions were made during this session, a significant number of Board members were of the view that obligations to sacrifice economic resources or conveyance of returns and risks differing from ownership both matter in the determining the existence of a liability. This is viewed as consistent with some recent standards decisions made by both the IASB and the FASB.

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