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The Exposure Draft ED/2019/7 includes the proposals of the International Accounting Standards Board (Board) to improve how information is communicated in the financial statements, with a focus on information about performance of the statement of profit or loss. The Board is proposing following limited changes to the statement of cash flows and the statement of financial position.
The Exposure Draft includes:
The Exposure Draft proposes that an entity presents the following new subtotals in the statement of profit or loss:
The Board proposes to define ‘integral associates and joint ventures’ and ‘non-integral associates and joint ventures’, and to require an entity to classify its equity-accounted associates and joint ventures as either integral or non-integral to the entity’s main business activities.
The Board also proposes to require an entity to provide information about integral associates and joint ventures separately from that for non-integral associates and joint ventures.
The Board proposes that an entity would be required to:
The Board does not propose to define earnings before interest, tax, depreciation and amortization (EBITDA) in this project.
The Board considered it, but rejected, describing operating profit or loss before depreciation and amortization as EBITDA.
However, the Board proposes to exempt from the disclosure requirements for management performance measures a subtotal calculated as operating profit or loss before depreciation and amortization.
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