The International Accounting Standards Board (IASB) issued the Discussion Paper Measurement Bases for Financial Accounting — Measurement on Initial Recognition for public comment. The Paper analyses possible bases for measuring assets and liabilities on initial recognition. The paper proposes that initial measurement should be determined as at the date of initial recognition. Furthermore, the initial recognition of a non-contractual asset that is developed over a period of time should be considered to occur, for purposes of initial measurement, when the asset becomes ready to contribute to the generation of future cash flows.
Issues relating to re-measurement, including impairment, will be dealt with in subsequent papers. The short version focuses primarily on issues relating to the measurement of assets. The main Discussion Paper also contains more extensive discussion in the context of liabilities and reaches similar conclusions for both assets and liabilities. Additional examples, citations of the relevant literature and other supporting information and analysis are provided in the main Discussion Paper.
Deadline for comments is 19 May 2006.
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© IASB - International Accounting Standards Board
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