Robert Herz and FASB are preparing a radical new format for financial statements.
Alix Stuart, CFO Magazine
February 1, 2008
Proposed financial statement presentation/arising developments can be found on IASB/FASB website: http://22.214.171.124/draft/DP_Financial_Statement_Presentation.pdf (beginning on page 87) More condensed version can be found: http://www.journalofaccountancy.com/Issues/2008/Nov/ShakingUpFinancialStatementPresentation
Posted by Natasha Glodek | February 10, 2009 02:09 pm
Does anyone know how / where I can see these proposed statements? Can someone post a link?
Posted by J Davis | February 15, 2008 07:48 pm
Hello, I have no idea what the FASB is thinking. They should give more direction on what should be in the lines not totally change the statements. What do they want as their legacy that we changed the look of the financial statements. Average person can not read them now. If analyst want to get funky with their analyst on investing a company let the information be in the footnotes. I believe the accounting field will be looked at as a bunch of fools. Thanks Tim
Posted by Tim Fitzgerald | February 08, 2008 09:02 am
Sounds to me like the FASB is on another of its intellectually stimulating but oh-so-impractical tangents in testing its new format for financial statements. Before companies are forced to pursue this expensive exercise in futility, the FASB needs to be reminded of rule number 1 about financial statements: Their primary intent is to provide timely, accurate and USEFUL information to users, i.e. owners, potential owners, credit analysts, regulators, etc. Somebody at the FASB needs to ask users what they want to see and what they find really useful in financial statements, rather than what strikes technical/theoretical accountants' fancy. I think users and providers of financial statements would be far better served if the FASB would spend their time defining EBITDA (earnings before interest, taxes, depreciation and amortization). Every fundamental analysis of a business starts or ends with this metric. But the FASB and SEC seem to suffer from NIH Syndrome ("Not Invented Here"). Again, they need to get their heads out of the theoretical sky and put their feet on the ground where financial statement users, i.e. their constituency, have to operate.
Posted by JAMES DAVIS | February 07, 2008 03:31 pm© CFO Publishing Corporation 2009. All rights reserved.