Discussion Paper: Measurement Bases for Financial Reporting

Date recorded:

The Board discussed an analysis of the comments received on the Discussion Paper Measurement Bases for Financial Reporting-Measurement on Initial Recognition, which was published for comments in November 2005.

The session was a feedback session and no decisions were taken by the Board at the September meeting, as the staff had no specific questions to raise.

The staff highlighted 13 issues that constitute the main comments that constituents had raised. (These are not reiterated here as they can be found in observer note 'Agenda Paper 6' on the IASB Website).

As a general observation, constituents who provided comments did not support the proposals put forward in the Discussion Paper. A point that was discussed at some length by the Board was the response on the relevance of fair value. Board members were confused by the fact that a majority of respondents were not supportive of the paper's proposal regarding the relevance of fair value on initial recognition, especially that some stated that fair value has no relevance.

The Board intends to consider the comments from constituents on the Discussion Paper during the measurement phase of the joint IASB/FASB Conceptual Framework project. The paper will also be considered in other IASB projects where the responses to this paper could provide valuable input.

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