In response to concerns from financial statement users about the comparability and transparency of companies’ performance reporting, the International Accounting Standards Board (IASB or the Board) published the Exposure Draft “General Presentation and Disclosures” in December 2019. The Exposure Draft, if finalised, would replace the existing IAS 1 “Presentation of Financial Statements”. IAS 1 presently guides the types of general disclosures needed in a set of financial statements.
The said Exposure Draft carries forward many of the requirements of IAS 1 and sets out some new and revised presentation and disclosure requirements in the financial statements with a focus on the statement of profit or loss.
This article provides an overview of the key changes about the general presentation and disclosures (including consequential amendments to other IFRS Standards) in future financial statements.
1. Key changes in the statement of profit or loss
2. Key changes in the statement of financial position
3. Key changes in the statement of cash flows
4. Disclosure of unusual income and expenses
5. Introduction of Management Performance Measures (MPM)