20 April 2013
Impact of FASB and IASB
The FASB and IASB are an essential part of global business and communication but with the world becoming dramatically smaller through the advancements of modern technology, there must be an alternative in which we can all converge to and all be “on the same page” for lack of better words. One of the major projects occurring currently is the “financial statement presentation project” in which it will ultimately define form, content, and display of each line item in the financial statement. These changes and merges with the standard for accounting are critically important to us because they are going to be the future of how corporate numbers will be presented. This future project will not only change what statements are required by the project and how the financial statements will appear but will also impose a change to the workspace just as we are entering the workforce. Financial statements required by the project:
The financial statement project is split into three phases and the first phase, phase A, focuses on what financial statements for a reporting period should be included. These comprise of the statements of financial position, a statement of comprehensive income, a statement of changes in equity and a statement of cash flows. In addition, each statement should be shown with equal prominence and a minimum of two years comparative information is required. These were deliberated in December 2005 and shortly after in September 2007, the IASB published a revised version of IAS 1. This made the IAS 1 similar to the FASB. In contrast to the IAS 1, FASB would require only a single statement of earnings and comprehensive income and require a subtotal of net income. The IAS 1 allows the presentation of nonowner changes in assets and liabilities to be presented in a single statement of comprehensive income or in two individual statements that consist of one being a statement of profit or...