EventX and its economic consequences have not changed, but the views about accounting recognition are influenced by how those consequences will be measured . Context is important . The type of cash flows, usually expressed in terms of the difficulty in estimation. Some seemed to suggest that operating cash flows, like salary costs, are qualitatively different from financial cash flows, like loan payments, and that the difference goes beyond difficulties in making estimates. The type of event prompting recognition.
Risk is important, and little understood.
Comment letters on adjustments to reflect risk revealed a wide variety of perceptions about risk, what it means in a measurement based on future cash flows, and how, or whether, it is captured in a particular measurement. The Board discussed the project at 11 Board meetings during 1992 and found itself at an impasse on several issues. In January 1993, the Board met with the project task force and found that members of that group were similarly divided. The materials prepared for that meeting focused on the role of context and presumption in shaping views of particular recognition and measurement problems. Chapter 2 updates those materials to reflect activity since the task force meeting.