Global Standards for the world economy

Saturday 27 May 2017

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Financial Statement Presentation

IASB meeting summaries and observer notes

 IASB / FASB 3 March 2010



The boards addressed the transition and effective date provisions to be included in the exposure draft on financial statement presentation.

The boards tentatively decided that the exposure draft should indicate their preference for requiring an entity to adopt the financial statement presentation provisions on a full retrospective basis. Accordingly an entity would apply the financial statement presentation requirements to previously-issued financial statements. This would entail, for each prior period, reclassifications, new groupings and disaggregation of comparative information presented and disclosed as if the new presentation provisions had always been applied. The boards indicated that the effective date for the final standard would provide adequate lead time for reporting entities to prepare for and implement the changes proposed. The exposure draft will include a question soliciting information about the amount of time needed to implement those changes.

The boards noted that they plan to consider the effective dates and transition for standards to be completed by 30 June 2011 collectively, and that they may therefore modify their previously-stated preferences in the case of some individual standards. As part of that consideration, the boards will address whether early adoption of the financial statement presentation standard should be permitted.

The IASB considered the related implications for IFRS 1 First-Time Adoption of International Financial Reporting Standards and tentatively decided that:

  • IFRS 1 should not provide any exceptions to, or exemptions from, the financial statement presentation standard for first-time adopters of IFRSs.
  • first-time adopters should be permitted to adopt that standard early.

Date: 3/3/2010