The IASB decided on the following measurement bases to be implemented under the Historical Cost Accounting model under IFRSs:
"A2. Measurement bases can be categorised as:
(a) historical cost (paragraphs A3–A11); or
(b) current measurement bases (paragraphs A12–A35).
A3. Measurements based on historical cost provide monetary information about resources, claims and changes in resources and claims using information about past transactions (for example, transaction prices). The initial measurement of assets or liabilities measured at historical cost is not adjusted to reflect changes in prices. However, the carrying amount is adjusted over time to reflect changes such as consumption, impairment and fulfilment.
Current measurement bases
A12. Current measurement bases are updated to reflect conditions at the measurement date. The following paragraphs describe the following current measurement bases:
(a) fair value (see paragraphs A14–A21);
(b) fulfilment value for liabilities and value in use for assets (see paragraphs A22–A31)."
It is generally accepted that IFRSs, with the exception of IAS 29 Financial Reporting in Hyperinflationary Economies, deal with financial reports prepared under the Historical Cost basis.
CAPITAL MAINTENANCE IN UNITS OF CONSTANT PURCHASING POWER™
The IASB has recently stated that capital maintenance in units of constant purchasing power is implemented under IAS 29 Financial Reporting in Hyperinflationary Economies.
Measurement in units of constant purchasing power was defined in IFRS in 1989 in the original Framework, Par. 104 (a) which stated: "Financial capital maintenance can be measured in nominal monetary units or units of constant purchasing power."
Par. 104 (a) appears unaltered as Par. 4.59 (a) in the current Conceptual Framework (2010).
Measurement in units of constant purchasing power as a measurement basis will be dealt with in the future IASB research project Financial Reporting in High Inflationary Economies as well as in the subsequent review of IAS 29 Financial Reporting in Hyperinflationary Economies.