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The Impact of the Fasb/Iasb - “Financial Statement Presentation Project”

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The Impact of the FASB/IASB - “Financial Statement Presentation Project”
The objective of project–
The objective of the financial statement presentation project is to establish a global standard that will guide the organization and presentation of information in the financial statements. Nowadays, the globalization of financial markets is increasing dramatically. In order to assist investors, creditors, and other financial statement users to better understand the entity’s financial situation and to help users in their decision-making , it is necessary for the financial statements to be state on a common accounting framework. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working on converging U.S. Generally Accepted Principles (US GAAP) and International Financial Reporting Standards (IFRS).
The goal of the “Financial Statement Presentation Project” is to consolidate the presentation of basic financial statements and format presented by a business entity, including the classification and display of line items and the aggregation of line items into subtotals. The following sections will outline the important changes in the new presentation for four major statements and finally arrive at a conclusion of the establishing of a new, common and high-quality standard presentation. structure of financial statement
The complete set of financial statement in the project includes following statement: statement of financial position (balance sheet), statement of comprehensive income, statement of cash flows and the reconciliation statement. But the key changes fall into the structure of financial statement, including business section, financial section, income tax section , discontinued operation and multicategory section. The business section includes assets and liabilities that relate to income…...

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