The IASB and FASB are proposing significant changes to financial statement presentation. The proposed standard for financial statement presentation fundamentally redefines the way that companies present their performance, financial position and cash flows to their stakeholders. Cohesiveness and disaggregation are the key drivers for change that are intended to address financial statement users' concerns about the lack of consistency and comparability in the current format.
Under the proposals, financial statements would be organised around an entity’s business activities (how it creates value) separate from its financing activities (how it funds those activities). This would entail a common set of sections and categories in which an entity classifies financial information across all financial statements. Additionally, the proposed guidance would require a significant increase in the amount of information that entities present within both the primary financial statements and the notes.
See full Details.
Posts
