Conceptual Framework Phase C — Measurement
The Board held a discussion on various aspects of the Measurement phase of the Conceptual Framework project. Staff from the FASB participated in person and by telephone.
Project phase summary
Board members discussed the project summary prepared by the staff for release on the Boards' websites. Included in this summary is an appendix listing 'definitions of measurement basis candidates', which attracted considerable comment. Some Board members were concerned that the appendix included, as 'measurement attributes', things that were not attributes but allocation methods (such as value in use); others were concerned about including candidates that, in a paper presented subsequently, it was obvious were non-starters. The staff will highlight those possible candidates for which further analysis will not be undertaken.
Project phase plan
The Board discussed a revised plan for the measurement phase up to the release of a discussion paper or preliminary views document. Included in the plan were proposals for 'collateral topics' that the staff might examine, including 'the meaning of financial position and comprehensive income'. Several Board members expressed considerable disquiet with this potential scope creep. The consensus appeared to be that the project plan should not be extended to these items. If the project plan is met, a discussion paper would be issued in late Q4 2008.
Measurement basis decision tool
The staff introduced a proposed rationale that they intend to use when assessing measurement basis candidates. The rationale would result in an 'ideal' measurement candidate in a given context with other surrogates. The Board would then be able to assess these candidates taking into account further decision criteria before setting a measurement attribute in a given standard.
Board members expressed concerns with aspects of the proposed staff approach, in particular the idea of a search for 'an ideal' measurement attribute (a search which one Board member described as 'over-zealous'). As a result, the staff agreed that they would return to a subsequent meeting (probably February 2008) with some examples of assessments of measurement attributes made using the tool.