The ASBJ submits two papers regarding measurements for the Conceptual Framework session during the March 2015 ASAF meeting

5 March 2015

The International Accounting Standards Board (IASB) has continued its redeliberation on a project to review The Conceptual Framework for Financial Reporting (the “Conceptual Framework”) responding to the comments received for the Discussion Paper A Review of the Conceptual Framework for Financial Reporting which was published in July 2013.

In view of the importance of the project, the ASBJ submitted two papers titled, Identification, Description and Classification of Measurement Bases and Role of “Nature of an Entity’s Business Activities” in Accounting Standard-Setting so as to facilitate the discussion of the Conceptual Framework session during the March 2015 ASAF meeting.

In the former paper, the ASBJ provided its preliminary view on the IASB’s tentative decisions regarding identification, description and categorisation of measurement bases, where the ASBJ suggested an alternative approach that would classify measurement bases on the basis of (a) whether to update inputs for measurements and (b) whether to adopt market participants assumptions or entity-specific assumptions when measuring an asset or a liability.

In the latter paper, the ASBJ provided its preliminary view that the nature of an entity’s business activities has a significant effect on various aspects of accounting standard-setting, and that there should be an overarching description in the Conceptual Framework that should be applied consistently throughout the standard-setting process.

The ASBJ hopes these suggestions would promote consistency of accounting requirements in IFRSs, thereby contribute to the development of a set of globally accepted high-quality financial reporting standards.

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