...continued
Statement(s) of financial performance
Event
Historical cost
Fair value
(market-participant
assumptions)
Value in use
(entity-specific
assumptions)
Current cost
Interest income
Interest income, at
historical rates,
updated if the asset
bears variable
interest.
Reflected in income
and expenses from
changes in fair value.
Reflected in income
and expenses from
changes in value in
use.
Interest income, at
current rates.
(Could
be identified
separately.)
(Could be identified
separately.)
Impairment
Expenses arising
because historical
cost is no longer
recoverable.
Reflected in income
and expenses from
changes in fair value.
Reflected in income
and expenses from
changes in value in
use.
Expenses arising
because current cost
is
no longer recover-
able.
(Could be identified
separately.)
(Could be identified
separately.)
Value changes
Not recognised,
except to reflect an
impairment.
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).
For financial assets
—income and
expenses from
changes in estimated
cash flows.
(a) This column summarises the information provided if value in use is used as a measurement
basis. However, as noted in paragraph 6.75, value in use may not be a practical measurement
basis for regular remeasurements.
(b) Income or expenses may arise on the initial recognition of an asset not acquired on market
terms.
(c) Income or expenses may arise if the market in which an asset is acquired is different from the
market that is the source of the prices used when measuring the fair value of the asset.
(d) Consumption of the asset is typically reported through cost of sales, depreciation or
amortisation.
(e) Income received is often equal to the consideration received but will depend on the
measurement basis used for any related liability.
Conceptual Framework
A70
© IFRS Foundation
...continued
Statement(s) of financial performance
Event
Historical cost
Fair value (market-
participant assump-
tions)
Fulfilment value
(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.
Reflected in income
and expenses from
changes in fulfilment
value.
Expenses equal to
the excess of the
estimated cash
outflows over the
current cost of the
liability, or a
subsequent change
in that excess.
(Could be identified
separately.)
(Could be identified
separately.)
Value changes
Not recognised
except to the extent
that the liability is
onerous.
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).
For financial liabili-
ties—income and
expenses from
changes in estimated
cash flows.
(a) Income or expenses may arise on the initial recognition of a liability incurred or taken on not
on market terms.
(b) Income or expenses may arise if the market in which a liability is incurred or taken on is
different from the market that is the source of the prices used when measuring the fair value
of the liability.
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