Financial Statement Presentation

 

The current presentation of financial statements reflects decades-old business practices. Presentation standards have not kept up with technology and the shift from regional to global markets. Current statements are a patchwork of various standards and aren’t consistent.

 

What’s Being Done to Fix the Problem?

The Financial Statement Presentation Project is a joint effort by the International Accounting Standards Board and the Financial Accounting Standards to improve the current format of statements, including:

• Balance sheets (or statements of financial presentation)
• Income statements
• Cash flow statements
• Statements of changes in shareowners’ equity

 

The goal is to have a uniform presentation standard that helps investors and creditors understand a company’s operations and value.

 

Why Is CFA Institute Interested in This Project?

• It will improve investors’ ability to analyze key information and predict future cash flows
• It has the potential to improve the quality of our global capital markets through advances in the valuation process
• It is consistent with the proposals outlined in our Comprehensive Business Reporting Model

 

Find out more about this project and our efforts.