AbstractThis article is a follow‐up to an earlier article which appeared in the Winter 1993/94 issue of the Journal of Corporate Accounting and Finance. That article detailed the general provisions of the proposed Statement of Financial Accounting Standards. The intent of this article is to take a closer look at the recognition and measurement provisions of the proposed Statement and to examine the basis for the Board's tentative conclusions on recognition and measurement. The first two sections of the article detail the recognition and measurement standards. The third section examines the Board's basis for the recognition criteria chosen. The fourth section reviews the measurement alternatives considered by the Board, and explains the basis for the Board's tentative conclusion