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Financial Statement Presentation

IASB meeting summaries and observer notes


 IASB 11 March 2010


 

 

Sweep issues in advance of pre-ballot draft

The boards discussed for possible clarification several points in their forthcoming exposure draft on financial statement presentation.

Both boards had previously decided that a complete set of financial statements includes statements of financial position, comprehensive income, cash flows, and changes in equity, as well as the accompanying notes. An entity is required to present a complete set of financial statements for the current period and for one comparative period. In addition, when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it is required to present a statement of financial position as at the beginning of the earliest comparative period (an opening statement of financial position).

The boards decided that the exposure draft should clarify these requirements as follows:

  • only one comparative period is required for a complete set of financial statements. Presenting one or more financial statements for additional comparative periods is acceptable, provided it is not misleading. That is, any additional financial statement presented must be prepared in accordance with current IFRSs/US GAAP and must be presented with the same prominence as the required financial statements.
  • an opening statement of financial position for that one comparative period is the only additional statement that an entity is required to present to be in compliance with IFRSs/US GAAP when there is a change in accounting policy, restatement or reclassification. On a separate issue, the boards decided that the exposure draft should clarify that if an item of other comprehensive income relates to, or will relate to, a discontinued operation, it should be identified and presented as such on the statement of comprehensive income.

Date: 3/11/2010