The International Accounting Standards Board (IASB) recently issued an exposure draft of proposals to amend IAS 1 ‘Presentation of financial statements’.
This exposure draft is a culmination of Segment A of the IASB’s joint project with the US Financial Accounting Standards Board on the important subject of performance reporting. The exposure draft considers the fundamental issue of what information should comprise ‘a complete set of financial statements’.
Statement of financial position
It is proposed that ‘balance sheet’ be replaced by ‘statement of financial position’, a term that is considered to better reflect the information being presented. In addition to the name change, a complete set of financial information would be required to include a statement of financial position, as at the beginning of the reporting period. Therefore, UK companies required to produce comparative information for the previous period would, under the new proposals, be required to produce three
