Snapshot: Preliminary Views on Financial Statement Presentation
This snapshot is a quick introduction to the discussion paper Preliminary Views on Financial Statement Presentation. Its purpose is to provide a first insight into the major ideas presented in the discussion paper. The snapshot has been prepared by staff and is not an official technical document of the IASB or the FASB.
Project objective:
The objective is to create a standard that requires entities to organise financial statements in a manner that clearly communicates an integrated financial picture of the entity. The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are undertaking this project jointly. The discussion paper (DP) is the first step towards the creation of a standard. In the DP the boards explain the issue and present their initial ideas on the topic. The objective is to receive feedback from interested parties early in the process.
Process stage:
Comment deadline: The DP is open for public comment until
14 April 2009.
Next step:
The boards will consider responses to the DP and then develop an exposure draft (ED) that sets out a specific proposal in the form of a proposed standard. The boards expect to publish an ED in 2010.
Why are we doing the project?
Financial statements are important. The boards believe that a common format for financial statement presentation will improve communication between users and preparers of financial statements.
Analysts and investors have long raised concerns about some issues in the way entities present information in financial statements. In creating a new standard the boards aim to address these concerns, including those listed below:
Information is not linked between the statements
A set of financial statements includes several individual
