to be the subject of a standards level project, but when those principles are established they need to be incorporated into the CF. No further comments. Question 6—Recognition criteria Do you agree with the proposed approach to recognition? Why or why not? If you do not agree, what changes do you suggest and why? We agree with the approach to recognition of setting out criteria to consider without determining the balance between them. In applying these criteria the IASB will need to be careful to try and minimise inconsistencies between the standards that might result. We have noted above our concern that the possibility in some cases of asymmetrical recognition of assets compared to liabilities, and of gains compared to losses needs to be reflected in the discussion of recognition criteria. Paragraph 5.13(a) refers to the existence of assets and its separability from goodwill. Arguably this separability should therefore be part of the definition of an asset. Question 7—Derecognition Do you agree with the proposed discussion of derecognition? Why or why not? If you do not agree, what changes do you suggest and why? We agree with the discussion of derecognition. Currently some standards employ a control model and others (such as for financial instruments) a risk and reward approach. Both are included as 5.25 and 5.29 respectively. Question 8—Measurement bases Has the IASB: (a) correctly identified the measurement bases that should be described in the Conceptual Framework? If not, which measurement bases would you include and why? (b) properly described the information provided by each of the measurement bases, and their advantages and disadvantages? If not, how would you describe the information provided by each measurement basis, and its advantages and disadvantages? We agree that the two main categories of measurement bases are historical cost and current values. However the implication of this for measurement
to be the subject of a standards level project, but when those principles are established they need to be incorporated into the CF. No further comments. Question 6—Recognition criteria Do you agree with the proposed approach to recognition? Why or why not? If you do not agree, what changes do you suggest and why? We agree with the approach to recognition of setting out criteria to consider without determining the balance between them. In applying these criteria the IASB will need to be careful to try and minimise inconsistencies between the standards that might result. We have noted above our concern that the possibility in some cases of asymmetrical recognition of assets compared to liabilities, and of gains compared to losses needs to be reflected in the discussion of recognition criteria. Paragraph 5.13(a) refers to the existence of assets and its separability from goodwill. Arguably this separability should therefore be part of the definition of an asset. Question 7—Derecognition Do you agree with the proposed discussion of derecognition? Why or why not? If you do not agree, what changes do you suggest and why? We agree with the discussion of derecognition. Currently some standards employ a control model and others (such as for financial instruments) a risk and reward approach. Both are included as 5.25 and 5.29 respectively. Question 8—Measurement bases Has the IASB: (a) correctly identified the measurement bases that should be described in the Conceptual Framework? If not, which measurement bases would you include and why? (b) properly described the information provided by each of the measurement bases, and their advantages and disadvantages? If not, how would you describe the information provided by each measurement basis, and its advantages and disadvantages? We agree that the two main categories of measurement bases are historical cost and current values. However the implication of this for measurement
50_5817_RichardMartinACCA_0_conceptualFrameworkResp1115.docx