The IASB reached the following tentative decisions relating to the development of preliminary views for the measurement chapter of the Conceptual Framework:
- Implications of the objective of financial reporting for measurement - the financial statements are complements, and all of them provide information that is useful to users of financial reports. Consequently, the best way to satisfy the objective of financial reporting through measurement is to consider the effect of a particular measurement selection on all of the financial statements, instead of emphasising the statement of financial position over the statement of comprehensive income or vice versa.
- General implications of the fundamental qualitative characteristics for measurement - an explanation of how the fundamental qualitative characteristics of useful financial information - relevance and faithful representation - must be considered in selecting measurements should be developed within the measurement chapter. The Board discussed specific points supporting this tentative decision which will be developed further.
- Specific implications of the fundamental qualitative characteristics for historical cost and fair value - the objective of selecting a measurement for a particular item is to maximise the information about the reporting entity's prospects for future cash flows subject to the ability to faithfully represent it at a cost that is justified by the benefits.
- What should the measurement chapter accomplish - the measurement chapter should list and describe possible measurements, arrange or classify the measurements in a manner that facilitates standard-setting decisions, describe the advantages and disadvantages of each measurement in terms of the qualitative characteristics of useful financial information, and discuss at a conceptual level how the qualitative characteristics and cost constraint should be considered together in identifying an appropriate measurement. Without prescribing specific measurements for particular assets and liabilities, the measurement chapter should discuss how its concepts might be applied to individual classes of assets and liabilities.