Primary Financial Statements Exposure Draft
Executive Summary : The 'Primary Financial Statements' project came out of the IASB's work on ‘Better Communication in Financial Reporting’, which among other things aims to increase comparability and transparency of companies' reporting. The aim of this project is to improve how information is communicated in the financial statements, with a focus on information about performance in the statement of profit or loss. There are three major parts of the exposure draft: 1) defining subtotals on the face of the P&L, 2) disaggregating information in the notes to the financial statements, and 3) improved disclosure/reconciliations of management performance measures (MPMs). The exposure draft was published on 17th Dec 2019, with the comment period ending on 30th June 2020. Key take-aways : 1. Defined Subtotals in the P&L : Currently there are no subtotals defined under IFRS between Revenues and Profit & Loss. Consequently companies define a ...