United States

FASB Proposes Concepts for Presenting Items in a Financial Statement

Aug 15, 2016
From the Financial Reporting Network

The FASB recently issued proposed Statement of Financial Accounting Concepts, Conceptual Framework for Financial
Reporting – Chapter 7: Presentation
, which would address how entities should present items that are recognized in a financial statement. This chapter would become a basis for the Board to create presentation requirements in future ASUs.

The proposal is designed to provide a foundation to enhance the ability of financial statement users to assess prospects for future cash flows by addressing how to (1) group recognized items into line items and subtotals and (2) clarify the relationships among assets, liabilities, and equity, and the effects of changes to assets and liabilities on comprehensive income and cash flows.

The comment period ends November 9.

Read Proposed Concepts Statement