.svg){kind=small}
%402x.svg){kind=small}
The International Accounting Standards Board (IASB) published a consultation proposal to improve the Conceptual Framework for Financial Reporting on 28 May 2015.
The Conceptual Framework underpins International Financial Reporting Standards (IFRS) and helps the IASB to develop Standards that bring transparency, accountability and efficiency to financial markets around the world.
The Exposure Draft (ED/2015/3) proposes a number of enhancements to the Conceptual Framework, including:
- A new Chapter on measurement that describes appropriate measurement bases (historical cost and current value, including fair value), and the factors to consider when selecting a measurement basis;
- Confirming that the statement of profit or loss is the primary source of information about a company’s performance, and adding guidance on when income and expenses could be reported outside the statement of profit or loss, in “Other Comprehensive Income (OCI)”; and
- Refining the definitions of the basic building blocks of financial statements – Assets, liabilities, equity, income and expenses.
The IASB is also proposing to place more emphasis on the importance of providing information needed for investors to assess management’s stewardship, and to reintroduce an explicit reference to ‘prudence’, explaining clearly what it means.
The deadline for commenting on the Exposure Drafts is 26 October 2015.
Reference:
Disclaimer:
The publication contains information in summary form and is therefore intended for general guidance only. This publication is not intended as legal, accounting or other professional advice and should not be relied upon as such. If legal, accounting or other professional advice or expert assistance is required, the services of a competent professional should be sought. Neither Reanda Lau & Au Yeung Limited nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication.
