Summary Information Provision By Measurement Bases – FAQ | IFRS

Summary information provision by measurement bases

Use the hyperlinks to get more information, this is the table 6.1 from chapter 6 Measurement of the Conceptual Framework 2018.

Measurement involves assigning monetary amounts at which the elements of the financial statements are to be recognised and reported.

The IFRS Framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including:

  • Historical cost Summary information provision by measurement bases
  • Current cost Summary information provision by measurement bases
  • Net realisable (settlement) value Summary information provision by measurement bases
  • Present value (discounted) Summary information provision by measurement bases
Summary of information provided by particular measurement bases
Statement of Financial Position
Assets
EventHistorical costFair value (market-participant assumptions)Value in use (entity-specific assumptions) – (a)Current cost
Carrying amountHistorical cost (including transaction costs), to the extent unconsumed or uncollected, and recoverable. (Includes interest accrued on any financing component.)Price that would be received to sell the asset (without deducting transaction costs on disposal).Present value of future cash flows from the use of the asset and from its ultimate disposal (after deducting present value of transaction costs on disposal).Current cost (including transaction costs), to the extent unconsumed or uncollected, and recoverable.
Statement(s) of financial performance
EventHistorical costFair value (market-participant assumptions)Value in use (entity-specific assumptions)Current cost
Initial recognition – (b)Difference between consideration paid and fair value of the asset acquired. – (c) Transaction costs on acquiring the asset.Difference between consideration paid and value in use of the asset acquired.
Sale or consumption of the asset – (d) (e)Expenses equal to historical cost of the asset sold or consumed. Income received. (Could be presented gross or net.) Expenses for transaction costs on selling the asset.Expenses equal to historical cost of the asset sold or consumed. Income received. (Could be presented gross or net.) Expenses for transaction costs on selling the asset.Expenses equal to historical cost of the asset sold or consumed. Income received. (Could be presented gross or net.)Expenses equal to historical cost of the asset sold or consumed. Income received. (Could be presented gross or net.) Expenses for transaction costs on selling the asset.
Statement(s) of financial performance
Interest incomeInterest income, at historical rates, updated if the asset bears variable interest.Reflected in income and expenses from changes in fair value. (Could be identified separately.)Reflected in income and expenses from changes in value in use. (Could be identified separately.)Interest income, at current rates.
ImpairmentExpenses arising because historical cost is no longer recoverable.Reflected in income and expenses from changes in fair value. (Could be identified separately.)Reflected in income and expenses from changes in value in use. (Could be identified separately.)Expenses arising because current cost is no longer recoverable.
Value changesNot recognised except to reflect an impairment. For financial
assets—income
and expenses
from changes in
estimated cash
flows.
Reflected in income and expenses from changes in fair value.Reflected in income and expenses from changes in value in use.Income and expenses reflecting the effect of changes in prices (holding gains and holding losses).
Statement of Financial Position
Liabilities
Historical costFair value (market-participant assumptions)Fulfilment value (entity-specific assumptions)Current cost
Carrying amountConsideration received (net of transaction costs) for taking on the unfulfilled part of the liability, increased by excess of estimated cash outflows over consideration received. (Includes interest accrued on any financing component.)Price that would be paid to transfer the unfulfilled part of the liability (not including transaction costs that would be incurred on transfer).Present value of
future cash flows
that will arise in
fulfilling the
unfulfilled part of
the liability
(including present
value of
transaction costs
to be incurred in
fulfilment or
transfer).
Consideration (net of transaction costs) that would be currently received for taking on the unfulfilled part of the liability, increased by excess of estimated cash outflows over that consideration.
Statement of financial performance
EventHistorical costFair value (market-participant assumptions)Value in use (entity-specific assumptions)Current cost
Initial recognition – (f)Difference
between
consideration
received and the
fair value of the liability. – (g) Transaction costs
on incurring or
taking on the
liability.
Difference between consideration received and the fulfilment value of the liability. Transaction costs
on incurring or
taking on the
liability.
Statement of financial performance Summary information provision by measurement bases
EventHistorical costFair value (market-participant assumptions)Fulfilment value (entity-specific assumptions)Current cost
Fulfilment of the liabilityIncome equal to historical cost of the liability fulfilled (reflects historical consideration). Expenses for costs incurred in fulfilling the liability. (Could be presented net or gross.)Income equal to fulfilment value of the liability fulfilled. Expenses for costs incurred in fulfilling the liability. (Could be presented net or gross. If gross, historical consideration could be presented separately.)Income equal to fulfilment value of the liability fulfilled. Expenses for costs incurred in fulfilling the liability. (Could be presented net or gross. If gross, historical consideration could be presented separately.)Income equal to current cost of the liability fulfilled (reflects current consideration)Expenses for costs incurred in fulfilling the liability. (Could be presented net or gross. If gross, historical consideration could be presented separately.)
Transfer of the
liability
Income equal to historical cost of the liability transferred (reflects historical consideration)Expenses for costs paid (including transaction costs) to transfer the liability. (Could be presented net or gross.)Income equal to fair value of the liability transferred Expenses for costs paid (including transaction costs) to transfer the liability. (Could be presented net or gross.)Income equal to fulfilment value of the liability transferred Expenses for costs paid (including transaction costs) to transfer the liability. (Could be presented net or gross.)Income equal to current cost of the liability transferred (reflects current consideration) Expenses for costs paid (including transaction costs) to transfer the liability. (Could be presented net or gross.)
Interest expensesInterest expenses, at historical rates, updated if the liability bears variable interest.Reflected in income and expenses from changes in fair value. (Could be identified separately.)Reflected in income and expenses from changes in fulfilment value. (Could be identified separately.)Interest expenses, at current rates.
Statement of financial performance Summary information provision by measurement bases
EventHistorical costFair value (market-participant assumptions)Value in use (entity-specific assumptions)Current cost
Effect of events
that cause a
liability to
become onerous
Expenses equal to the excess of the estimated cash outflows over the historical cost of the liability, or a subsequent change in that excess.Reflected in income and expenses from changes in fair value. (Could be identified separately.)Reflected in income and expenses from changes in fulfilment value. (Could be identified separately.)Expenses equal to the excess of the estimated cash outflows over the current cost of the liability, or a subsequent change in that excess.
Value changesNot recognised except to the extent that the liability is onerous. For financial liabilities—income and expenses from changes in estimated cash flows.Reflected in income and expenses from changes in fair value.Reflected in income and expenses from changes in fulfilment value.Income and expenses reflecting the effect of changes in prices (holding gains and holding losses).

 

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