Effectiveness Of Discussion Paper Work Over The Aim Of Generating The Most Relevant Information

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CONTENTS The effectiveness of discussion paper work over the aim of generating the most relevant information 2 The effectiveness of discussion paper work over the aim of reducing complexity and improving faithfulness in representation 3 Conclusion 5 References 5 WORDS COUNT – 1500 THE EFFECTIVENESS OF DISCUSSION PAPER WORK OVER THE AIM OF GENERATING THE MOST RELEVANT INFORMATION Basing on the background that Conceptual Framework (CF) has offered a mixed model of measurement but giving not enough instructions to help the users of financial statements applying this model into their daily business activities; thus, the Discussion Paper (DP) is taken in place under that need, doing a revised job of the CF and offering its readers…show more content…
113 - 131). In details, by having the sensitive-adaptation characteristic in cost-identifying, the cost-based basis is claimed to be superior than the others in case the users have to evaluate the indirectly contributed or having the insignificant variability in the contractual cash-inflow assets and the settle-term-payment liabilities; Meanwhile, the current-market-price basis (the direct-contributed future cash-inflow assets) and the cash-flow-based (the unstated-term liabilities) shows their effectiveness in generating relevant information (ibid.) Indeed, these preliminary views are generally accepted by the most of the users (The Line Group, 2014; MU, 2014; HKAB, 2014). For the partial agreed users, in common, most concerns are raised over the cost occurs (NUS, 2014; Kingston Smith, 2014), the assumption of the market scenario in DP (HoTARAC, 2014; Imamura, 2014 - and later be viewed in the over-simplified issue that mentioned by the disagreed users), and the lack of options in case specific information is needed (ESMA, 2014; HoTARAC, 2014). In specifics, the effectiveness of the cost-based technique is questioned by both HoTARAC and Imamura by giving an example of changing in market scenario as there appears a reliable market price for the same type of mentioned assets (HoTARAC) or pointing out the unrealistic assumption such as cash flow will not occur for many years in paragraph 6.85 of DP
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