This assignment seeks to assess your ability to:
1.Critically evaluate and discuss Chapter 6 (Measurement) of the Exposure Draft (ED/2015/3) Conceptual Framework for Financial Reporting issued by the International Accounting Standards Board.
2.Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising from both familiar and unfamiliar situations;
3.Think critically, examine problems and issues from a number of perspectives, challenge viewpoints, ideas and concepts and make well-reasoned judgements;
4.Present, discuss and defend ideas, concepts and views effectively through formal language
On 28 May 2015 the International Accounting Standards Board (IASB) published for public comment an Exposure Draft proposing a revised Conceptual Framework for Financial Reporting. The proposals aimed to improve financial reporting by providing a more complete, clearer and updated set of concepts. This Exposure Draft is more complete than the 2010 Conceptual Framework, clarifies some aspects of the 2010 Conceptual Framework, and updates the parts of the 2010 Conceptual Framework that are out of date.
The proposed Exposure Draft contains eight chapters. Chapter 6 of the Exposure Draft focuses on measurement and discusses different measurement bases (historical cost and current value), the information that they provide and their advantages and disadvantages; and the factors to consider when selecting a measurement basis.
The IASB invited the interested parties to submit their comments on the proposals in this Exposure Draft electronically to the IASB website. The comments received on this Exposure Draft were considered by the IASB to develop the revised Conceptual Framework. The comment period was closed by 26 October 2015. Finally, the IASB published the revised Conceptual Framework in March 2018. The Conceptual Framework 2018 will be effective from 1 January 2020.
All Comment Letters submitted by the interested parties, Basis for Conclusions that accompanies the Exposure Draft (ED/2015/3) and summarises the considerations of the IASB, a Snapshot introducing the IASB’s Exposure Draft, a Feedback Summary providing a high level summary of the comments received, and other supporting materials are available in the IASB’s project webpages.
You are required to write a report for the CEO of a public group company listed on the London Stock Exchange (LSE) after reviewing Chapter 6 (Measurement) of the Exposure Draft (ED/2015/3), the Comment Letters from the interested parties, Basis for Conclusions, and other suggested documents on the Exposure Draft.