FASB Proposes Changes in Presentation of Financial Statements
A revelation draft has been released by the Financial Accounting Standards Board – FASB, that is suggesting modifications in its theoretical structure connected to how in a financial statement, matters are presented.
The chapter 7 of the exposure draft named Conceptual Frame work for Financial Reporting gives details about the suggestions and will develop into a foundation for the Financial Accounting Standards Board when it explains presentation requirements in future accounting principles.
The suggested modifications plan to get better the capability of financial statements users to forecast expected cash flows. The suggestions also contain the points of how items subtotal and line items are recognized by the individuals in the group, and elucidate the association between equity, liabilities and assets, also include the consequences of associated modifications on complete income cash flows and income.
Russell G. Golden, FASB Chairman said in a statement, “The theoretical structure is the base for deciding the solutions of reporting and accounting questions. These suggestions are proposed to give basis, structure and direction for reliable Board feedbacks while producing standard setting conclusions connected to presentation.”
This suggested proposal is part of the Financial Accounting Standards Board’s superior conceptual framework plan for making accounting principles in the future, which also includes dimensions and revelations perceptions. If you want more information about this conceptual frame work proposal, then visit FASB website.