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Financial statement presentation

Date recorded:

Report on the results of outreach activities

The staffs presented to the Boards the results of the additional outreach activities performed related to the proposals in the Staff Draft on financial statement presentation. The outreach activities included 1) preparer field visits; 2) meetings with financial statement users; 3) field testing; and 4) other outreach with preparers, auditors, the FSP working group, national standard setters and regulators, representative groups and users.

The staffs met with ten separate companies, six in the US and four in Europe. The discussions with these companies primarily focused on direct-method cash-flow information, disaggregation of expenses by nature and the analyses of changes in the statement of financial position. The companies provided the staffs with an understanding of some of the financial reporting complexities and estimates of costs involved in implementing the proposals.

The staffs also met with 42 investors or other financial statement users. The user outreach meetings focused on the proposed structure and cohesiveness of the financial statements, cash flow information, by-function and by-nature segment information (FASB only), and the analyses of changes and remeasurement disclosures. Additionally, the staffs posted on their respective websites a PowerPoint deck explaining the main aspects of the Staff Draft and a user questionnaire seeking input on the Staff Draft proposals.

The staffs also conducted field testing procedures with 15 companies, ten non-public US companies and five financial services companies who recast their financial statements and provided feedback regarding operationality of the proposed models.

The Boards made no tentative decisions during this meeting.

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