Conceptual Framework for Financial Reporting

Table 6.1—Summary of information provided by particular measurement bases
Assets
Statement of financial position
Historical cost
Fair value 
(market-participant
assumptions)
Value in use
(entity-specific
assumptions)
(a)
Current cost
Carrying amount
Historical cost
(including transac-
tion costs), to the
extent unconsumed
or uncollected, and
recoverable.
Price that would be
received to sell the
asset (without
deducting transac-
tion 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 (includ-
ing transaction
costs), to the extent
unconsumed or
uncollected, and
recoverable.
(Includes interest
accrued on any
financing
component.)
Statement(s) of financial performance
Event
Historical cost
Fair 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)
Difference between
consideration paid
and value in use of
the asset acquired.
—
Transaction costs on
acquiring the asset.
Transaction costs on
acquiring the asset.
Sale or 
consumption of the
asset
(d)
,
(e)
Expenses equal to
historical cost of the
asset sold or
consumed.
Expenses equal to
fair value of the
asset sold or
consumed.
Expenses equal to
value in use of the
asset sold or
consumed.
Expenses equal to
current cost of the
asset sold or
consumed.
Income received.
Income received.
Income received.
Income received.
(Could be presented
gross or net.)
(Could be presented
gross or net.)
(Could be presented
gross or net.)
(Could be presented
gross or net.)
Expenses for
transaction costs on
selling the asset.
Expenses for
transaction costs on
selling the asset.
Expenses for
transaction costs on
selling the asset.
continued...
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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.
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Liabilities
Statement of financial position
Historical cost
Fair value 
(market-participant
assumptions)
Fulfilment value 
(entity-specific
assumptions)
Current cost
Carrying amount
Consideration
received (net of
transaction costs)
for taking on the
unfulfilled part of the
liability, increased by
excess of estimated
cash outflows over
consideration
received.
Price that would be
paid to transfer the
unfulfilled part of the
liability (not includ-
ing transaction costs
that would be
incurred on
transfer).
Present value of
future cash flows
that will arise in
fulfilling the unfulfil-
led part of the liabili-
ty (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.
(Includes interest
accrued on any
financing
component.)
Statement(s) of financial performance
Event
Historical cost
Fair value 
(market-participant
assumptions)
Fulfilment value 
(entity-specific
assumptions)
Current cost
Initial recogni-
tion
(a)
—
Difference between
consideration
received and the fair
value of the liabili-
ty.
(b)
Difference between
consideration
received and the
fulfilment value of
the liability.
—
Transaction costs on
incurring or taking
on the liability.
Transaction costs on
incurring or taking
on the liability.
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Statement(s) of financial performance
Event
Historical cost
Fair value (market-
participant assump-
tions)
Fulfilment value
(entity-specific
assumptions)
Current cost
Fulfilment of the
liability
Income equal to
historical cost of the
liability fulfilled
(reflects historical
consideration). 
Income equal to fair
value of the liability
fulfilled.
Income equal to
fulfilment value of
the liability fulfilled.
Income equal to
current cost of the
liability fulfilled
(reflects current
consideration).
Expenses for costs
incurred in fulfilling
the liability. 
Expenses for costs
incurred in fulfilling
the liability.
Expenses for costs
incurred in fulfilling
the liability.
Expenses for costs
incurred in fulfilling
the liability.
(Could be presented
net or gross.)
(Could be presented
net or gross. If
gross, historical
consideration could
be presented
separately.)
(Could be presented
net or gross. If
gross, historical
consideration could
be presented
separately.)
(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).
Income equal to fair
value of the liability
transferred. 
Income equal to
fulfilment value of
the liability transfer-
red.
Income equal to
current cost of the
liability transferred
(reflects current
consideration).
Expenses for costs
paid (including
transaction costs) to
transfer the liability.
Expenses for costs
paid (including
transaction costs) to
transfer the liability.
Expenses for costs
paid (including
transaction costs) to
transfer the liability.
Expenses for costs
paid (including
transaction costs) to
transfer the liability. 
(Could be presented
net or gross.)
(Could be presented
net or gross.)
(Could be presented
net or gross.)
(Could be presented
net or gross.)
Interest expenses
Interest expenses, at
historical rates,
updated if the liabili-
ty bears variable
interest.
Reflected in income
and expenses from
changes in fair value.
Reflected in income
and expenses from
changes in fulfilment
value.
Interest expenses, at
current rates.
(Could be identified
separately.)
(Could be identified
separately.)
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...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.