This discussion paper, prepared by the Canadian Accounting Standards Board and published by the IASB, analysed possible measurement bases on initial recognition and proposed that fair value should be used provided it can be reliably measured. The ACT response does not support their proposals.
The ACT is grateful for the opportunity to comment on the paper. We have a number of fundamental concerns regarding the arguments made and conclusions reached in the paper and address these first in the comments below. We believe our concerns to be so fundamental that they call into question the relevance of some of the 18 questions for which comment has been specifically sought and so we have declined to comment on these. However we have addressed those questions which reflect our more general concerns and which we believe are relevant.
