IAS Plus newsletter - Special Global Edition – Proposals to Revise Presentation of Financial Statements
On 16 March 2006, the International Accounting Standards Board (IASB) issued an
Exposure Draft (ED) of proposed amendments to IAS 1 Presentation of Financial
Statements. The ED results from the first stage (known as 'Segment A') of the IASB's project on performance reporting and, if adopted, would bring IAS 1 largely into line with the equivalent US standard as regards the matters addressed.
Under the ED’s proposals, an entity would be required to present all income and
expenses separately from changes in its equity that arise from transactions with its
owners. Entities would have a choice of presenting income and expenses in a single
statement or in two statements. An entity would also be required to include in its
financial statements a statement showing its financial position (balance sheet) at the
beginning of the comparative period.
