B146 The concerns in paragraphs B142 B143 above are not allayed by the AASB’s – proposal in paragraph 9.50 of the DP to retain the existing Conceptual Framework’s discussion of concepts of capital maintenance largely unchanged until any project on accounting for high inflation indicates a need for change. This is because the discussion of concepts of capital maintenance in the existing Conceptual Framework is descriptive and does not indicate which concept of capital maintenance is conceptually ideal. B147 As implied by paragraph B142(b) above and illustrated in the example in paragraphs B144 B145 above, a corollary of addressing in the Conceptual – Framework the concept of capital maintenance (concept of economic income) is addressing first the overarching issue of the concept of capital (concept of wealth). B148 Another reason there is no need to defer consideration of concepts of capital and capital maintenance is the extensive literature that exists regarding these concepts. Other Comments B149 The AASB notes that the discussion of some topics in the DP seems unduly restrictive, by focusing on particular or without first discrete ‘Views’ ‘Approaches’ discussing the spectrum of possible views within which those or ‘Views’ belong. For example: ‘Approaches’ (a) the discussion of OCI in Section 8 of the DP focuses on the components of particular apparently without seeking to identify overarching ‘Approaches’, concepts; and (b) the discussion of subsequent measurement of assets and liabilities in paragraphs 6.73 6.109 of the DP focuses on approaches that do not – consider concepts of wealth (or capital), although there is a considerable body of accounting literature on those concepts, as noted in paragraph B148 above.
B146 The AASB’s concerns in paragraphs B142 – B143 above are not allayed by the proposal in paragraph 9.50 of the DP to retain the existing Conceptual Framework’s discussion of concepts of capital maintenance largely unchanged until any project on accounting for high inflation indicates a need for change. This is because the discussion of concepts of capital maintenance in the existing Conceptual Framework is descriptive and does not indicate which concept of capital maintenance is conceptually ideal. B147 As implied by paragraph B142(b) above and illustrated in the example in paragraphs B144 – B145 above, a corollary of addressing in the Conceptual Framework the concept of capital maintenance (concept of economic income) is addressing first the overarching issue of the concept of capital (concept of wealth). B148 Another reason there is no need to defer consideration of concepts of capital and capital maintenance is the extensive literature that exists regarding these concepts. Other Comments B149 The AASB notes that the discussion of some topics in the DP seems unduly restrictive, by focusing on particular discrete ‘Views’ or ‘Approaches’ without first discussing the spectrum of possible views within which those ‘Views’ or ‘Approaches’ belong. For example: (a) the discussion of OCI in Section 8 of the DP focuses on the components of particular ‘Approaches’, apparently without seeking to identify overarching concepts; and (b) the discussion of subsequent measurement of assets and liabilities in paragraphs 6.73 – 6.109 of the DP focuses on approaches that do not consider concepts of wealth (or capital), although there is a considerable body of accounting literature on those concepts, as noted in paragraph B148 above.
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