United States

Proposed presentation of items in a financial statement


As part of its conceptual framework presentation project, the Financial Accounting Standards Board recently issued a proposed Statement of Financial Accounting Concepts, Concepts Statement 8 - Conceptual Framework for Financial Reporting - Chapter 7: Presentation. This exposure draft describes proposed concepts related to how recognized items should be presented in a financial statement. The proposal is designed to provide a foundation for future standards to enhance financial statement users’ abilities to assess prospects for future cash flows by addressing how to (a) group individual recognized items into line items and subtotals; and (b) clarify the relationships among assets, liabilities and equity and the effects of related changes of those assets and liabilities on comprehensive income and cash flows. The proposal is available for comment until November 9, 2016.