The IASB and FASB are currently studying the issue of reporting financial performance.
Go to the IASB website (www.ifrs.org) and download the Discussion Paper: Preliminary Views on Financial Statement Presentation from October 2008.
(a) Explain the proposed presentation model for the statement of comprehensive income. Why has the Board decided on this format? What are the main income statement categories that are being proposed? Discuss whether these categories will improve financial reporting.
(b) Why is disaggregation so important? What disaggregation is proposed? Give three examples of this disaggregation of operating revenue and expenses using the sample statements in the appendix to the report. Is this useful?