![]() ![]() In such cases, preparers need to refer to the measurement concepts in the Conceptual Framework. if no IFRS Standard specifically applies to the transaction, other event or condition and if, also, no IFRS Standards deal with similar and related issues.if a Standard permits a choice between different measurement bases.Nevertheless, in some circumstances, preparers of financial statements need to select the measurement basis: for organisations and people commenting to the IASB on its proposals.for the IASB itself when it is developing standards and.So, the discussion on that topic in the Conceptual Framework is mainly important: Who needs to look at table 6.1?įor most assets and liabilities, the IASB selects the measurement basis when it writes a Standard. In selecting a measurement basis, it is vital to consider the whole discussion in paragraphs 6.23-6.86-including the information in table 6.1. various other factors, discussed in paragraphs 6.44-6.86.In addition, the information needs to be, as far as possible, comparable, verifiable, timely and understandable. the need for the selected measurement basis to provide information that both: (i) is relevant to users of financial statements and (ii) faithfully represents what it purports to represent.Paragraphs 6.24-6.42 discuss that topic and table 6.1 summarises the information provided by various measurement bases. the nature of the information provided by that measurement basis both in the statement of financial position and in the statement of financial performance.The Conceptual Framework (in paragraphs 6.23 and 6.43) directs people to consider the following when they select a measurement basis for an asset or liability and for the related income and expenses: It has always surprised me how little attention that table has attracted, both when the IASB was developing the revision and since then. That table summarises what information various measurement basis provide. To my mind, one of the most important (and helpful) items added in that deeper discussion is a table (table 6.1). Among other things, that revision added a much deeper and more helpful discussion of measurement. The IASB revised the Conceptual Framework for Financial Reporting in 2018. In this post, I highlight that table, summarise its role and content, and explain why it is important. It seems that people have paid little attention to that table. The additions in 2018 to the IASB’s Conceptual Framework for Financial Reporting included a table summarising what information various measurement basis provide. ![]()
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