Project UpdatesFinancial Statement PresentationJoint Project of the IASB and FASBLast Updated: April 30, 2008 (Updated sections are indicated with an asterisk *)This project update summarizes the project activities and decisions of the IASB and FASB (the Boards). It was prepared by the staff and is for the information and convenience of the Boards’ constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process. Project Objective Project Objective The objective of this joint FASB/IASB project on financial statement presentation is to establish a common, high-quality standard for presentation of information in the individual financial statements (and among the financial statements) that will improve the ability of investors, creditors, and other financial statement users to:
The standard will address the presentation and display of financial statement information, including the classification and display of line items and the aggregation of line items into subtotals and totals. *Project Plan The FASB and IASB are sharing staff resources and research for this joint project and are working to coordinate the issuance of a public discussion document. The joint project team consists of staff from the ASBJ (Accounting Standards Board of Japan), the FASB, and the IASB. The project is being conducted in phases, as described below:
Due Process Documents Phase A On March 16, 2006, the IASB published its Phase A Exposure Draft, Proposed Amendments to IAS 1 Presentation of Financial Statements: A Revised Presentation. Link to Comment Letters on IASB website On September 6, 2007, the IASB published the revised version of IAS 1 Presentation of Financial Statements, which brings IAS 1 largely into line with FASB Statement No. 130, Reporting Comprehensive Income. IAS 1, Presentation of Financial Statements The FASB decided that it would not publish a separate Exposure Draft on Phase A of the project. Rather, it will expose its Phase A decisions along with its Phase B decisions. Decisions Reached at the Last Meeting March 11, 2008 IASB meetingIASB Update March 12, 2008 FASB meetingAction Alert *Summary of Decisions Reached to Date (March 31, 2008) Although the Boards coordinate the timing of their deliberations of the issues in the joint project, they deliberate and vote on each issue individually. As a result, at any given time, one Board may have reached a tentative conclusion on a given issue, while the other Board has not yet deliberated on it. Similarly, the Boards could reach different tentative conclusions on certain issues. Any differences in views or timing of discussion are noted below. Scope and scope exceptions
Phase A: Summary of Decisions as of September 30, 2007 *Phase B: Summary of Preliminary Views as of March 31, 2008 *Next Steps The staff is currently drafting the initial discussion document based on the Boards’ preliminary views to date. It expects that drafting to continue into the second quarter of 2008. The staff plans to provide the Boards with a draft of the document in May 2008. The Boards will address any remaining issues once they have reviewed that draft. The Boards expect to publish the discussion document in the third quarter of 2008. Board/Other Public Meeting Dates Related FASB Articles
Background Information In April 2004, to further the goal of promoting convergence of the accounting standards used internationally, the FASB and IASB decided to combine their respective projects on the reporting and classification of items of revenue, expense, gains, and losses. In agreeing to pursue their similar projects jointly, the Boards agreed to take a fresh look at the presentation of information in financial statements. The joint project has an expanded scope beyond presentation and display of items of income and expense; it addresses presentation and display on the face of the financial statements that constitute a complete set of financial statements. Advisory Groups To further their research, the Boards and staff have been seeking input informally from the following groups on a regular basis:
The Joint International Group (JIG) on financial statement presentation was formed in 2005 to help the Boards and staffs identify issues to be considered in this project and develop proposed solutions. The JIG consists of senior professionals with extensive experience in and responsibility for the preparation, analysis, audit, and regulation of financial statements. The JIG does not include members from the financial institution preparer or user community. The Boards formed a Financial Institution Advisory Group (FIAG) in September 2006 to help them address presentation issues from the perspective of those who analyze and prepare financial institution financial statements. The Boards met with members of the JIG in January and June, 2005 and September 2006. [Meeting Materials] A meeting with members of both the JIG and the FIAG was held September 14, 2007, at the FASB offices in Norwalk, Connecticut. View a summary of that meeting and meeting materials. History of the Project Contact Information Kim Petrone Denise Gomez |