IASB July 2007

The Board discussed matters related to three phases of the conceptual framework project: elements and recognition, measurement and the reporting entity.

Elements and recognition

The staff presented a report of consultations on the working definition of an asset, as developed by the IASB and FASB. This included consultation with the boards’ advisory committees, as well as national standard-setters, selected academics and individuals. The Board discussed whether the staff should temporarily set aside further consideration of the remaining issues surrounding the working definition of an asset and focus its limited staff resources on considering other related cross-cutting issues in this phase. Those issues relate to the unit of account, recognition, and derecognition. The Board directed the staff to proceed as far as possible in resolving the remaining definitional issues before considering issues relating to the unit of account, recognition, and derecognition. In order to understand better how the working definition of an asset improves on the existing IASB and FASB definitions and the remaining definitional issues, the Board suggested that staff should apply the working definition and the existing definitions to various types of assets.

Measurement

The Board began its deliberations for Milestone II of the measurement phase with a discussion of measurement concepts, principles, and terms. The discussion was intended to help the Board and staff understand the nature of measurement and differences between measurement and other processes such as estimation, calculation, allocation, and forecasting.

Three criteria derived from the concepts and principles of measurement (real attribute, present attribute, and observable attribute) might be used to evaluate measurement basis candidates. Those criteria and evaluations will be considered in conjunction with other criteria and evaluations (yet to be discussed) in an evaluation of the measurement basis candidates at the end of Milestone II.

Reporting Entity

The Board tentatively decided that the forthcoming Discussion Paper/Preliminary Views Document (DP/PVD) on the reporting entity concept will allow 120 days for comment.