TITLE: FINANCIAL REPORTING
TOPIC: MEASUREMENT BASES FOR FINANCIAL ACCOUNTNG-MEASUREMENT ON INITIAL RECOGNITION.
NAME: MIR THASEEN ALI
MBA INNOVATIVE MANAGEMENT
STUDENT ID NO: 39231
PRESENTED TO: DR OMER MASOOD.
Measurement Bases for Financial Accounting — Measurement on Initial Recognition
3. Preliminary review of literature
4. Research question
4.1 Research objectives
5. Research plan/methodology
6. Ethical consideration
7. Planning and any special resources required.
These conversations Paper focus on dimension going on original appreciation of assets and liabilities .It represent the opening stage of a mission to address the measurement objective for assets and liabilities that are recognized in financial statements. The project is planned to provide the International Accounting Standards Board (IASB) and national standard setters with a sound conceptual basis for: (a) Revising and expanding the measurement aspects of their conceptual frameworks, and (b) Improving the measurement requirements of their financial reporting standards. .
Although the IASB has not yet on purpose the issues in the Discussion Paper, it has made tentative Decision’s in another project that addresses measurement on initial recognition of assets and liabilities. The fair value hierarchy and related guidance will be the Boards’ guidance on measuring the fair value of an acquirer’s assets and liabilities in accounting for a business combination. It is intended to ensure consistent application of the fair value measurement objective in accounting for business combinations. The Discussion Paper proposes a measurement hierarchy for assets and liabilities on initial recognition that differs in some respects from the fair value hierarchy in the FASB exposure draft. SUMMARY
PART I: THE PROJECT AS A WHOLE
Purpose and Importance of Project
The purpose of this project is to undertake a beginning search of financial accounting measurement objectives and option measurement bases for assets and liabilities that are Recognized in financial statement in light of development that have taken place in theory and Practice over the years. The project has been undertaken because existing measurement standards and practices are not in agreement, and a number of major measurement issues remain unsettled. Some existing standards reflect more or less chance mixed measurement compromise, pending decision of disagreeing views on appropriate measurement bases
stage of the Project
The project will proceed in stages. The first stage involves analyze achievable bases for measurement On initial identification of assets and liabilities. This stage is the focus of this paper. Measurement on initial identification is important in its own right, and the paper’s analyses and proposed principles for measurement on initial recognition lay the foundation for following stages .following stages will involve analyses of possible bases for re-measurement of existing assets and liabilities when accounting standards require re-measurement (including measurement of assets that are identified as impaired).
Criteria for Evaluation
The criteria for evaluating alternative measurement bases are derived from the existing conceptual frameworks of the IASB and national standard setters. These criteria are based on the frameworks ’decision usefulness objectives, qualitative characteristics of useful financial information (in particular ,relevance and reliability), and the concepts of assets and liabilities (and their cash-equivalent flow attributes). These criteria are interpreted and applied in light of the developments in theory and practice referred to above. TITLE:
Purpose of Project...