#Does exposure x replace exposure 7 free#
Remove the free choice whether the analysis of operating expenses is by nature or by function instead the Board proposes to provide a set of factors for entities to consider when making this assessment remove the option to present an analysis of expenses in the notes only if the statement of profit or loss presents an analysis by function, there is no requirement to analyse each functional line item by nature in the notes (analysis would be of total operating expenses).The introduction of requirements to improve aggregation and disaggregation aims at additional relevant information and insuring that material information not being obscured.Not to define EBITDA, but to use ‘operating profit or loss before depreciation and amortisation’, which would provide similar information to many of the EBITDA measures that are currently being used and is clearly understood.Require entities to present separately ‘integral’ and ‘non-integral’ associates and joint ventures in statements of financial performance and cash flows, where a significant interdependency between an entity and an associate or joint venture would indicate that the associate or joint venture is integral to the main business activities of the entity (the definition would be supplemented with indicators for determining whether a joint venture or associate is ‘integral’ or ‘non-integral’).Require all entities to present an operating profit or loss subtotal in the statement of profit or loss, which is defined as profit from continuing operations before tax and before investing (defined as returns from investments that are generated individually and largely independently of other resources held by an entity), financing (defined as income and expenses from assets and liabilities related to an entity’s financing), and the share of profit of integral associates and joint ventures whether an item is ‘unusual’ does not affect whether it is included in operating profit there is a separate proposed approach to operating profit for financial entities.The introduction of defined subtotals and categories in the statement of profit or loss aims at additional relevant information and a P&L structure that is more comparable between entities.On the four above mentioned areas, ED/2019/7 General Presentation and Disclosures proposes the following: Other requirements of IAS 1 will be moved to IAS 8 (which would be renamed to Basis of Preparation, Accounting Policies, Changes in Accounting Estimates and Errors) and IFRS 7.
The related requirements in IAS 1 will be brought forward to the new standard with limited wording changes. In May 2019, the Board also decided that a discussion paper is not required and that as a next project step, the Board will develop an exposure draft for a new standard replacing IAS 1 Presentation of Financial Statements. Introduction of targeted improvements to the statement of cash flows.Introduction of Management Performance Measures (MPMs) and accompanying disclosures in financial statements.Introduction of requirements to improve aggregation and disaggregation.Introduction of defined subtotals and categories in the statement of profit or loss.
The Board decided to focus on four main areas: The Board took up discussions in the project in April 2016.
The Agenda consultation 2015 revealed that respondents wanted the Board to prioritise projects that are important to users of financial statements, including the disclosure initiative and the primary financial statements project.
0 kommentar(er)
