The Primary Financial Statements project is an early-stage research project examining possible changes to the structure and content of the primary financial statements. It is an important part of the International Accounting StandardsBoard’s (the Board's) better communication theme. To learn more about the Board’s plan for better communication in financial reporting click here.

Upcoming discussions

The Board and staff have conducted initial research, including outreach with investors, to help define the scope of the project. This research has focused on:

  • the structure and content of the statement(s) of financial performance, including assessing whether to require a defined subtotal for operating profit and examining the use of alternative performance measures (ie financial measures that are not defined or specified in IFRS Standards);
  • the potential demand for changes to the statement of cash flows and the statement of financial position; and
  • the implications of digital reporting for the structure and content of the primary financial statements.

Papers summarising this research will be presented to the Board in November 2016. To read those papers click here.

It is expected that the Board will decide on the scope of the project in December 2016.

The Financial Reporting Council (FRC) consultation into improvements to the cash flow statement

On 20 October 2016 the UK FRC launched a consultation into possible improvements to the statement of cash flows. Feedback received on that consultation document will also be relevant to the Board’s work on Primary Financial Statements.

Further detail about the FRC’s consultation can be found on the FRC website. The deadline for responses on their consultation document is 28 February 2017.

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