Assessment

Details After completing your accounting degree, you secured a graduate position at one of the top 4 accounting firms. You are part of the international strategy team that monitors the latest international developments. As your first task, you have been asked by your team leader to prepare a position paper on the new proposals found in ASB Exposure Draft 2019/17 General Presentation and Disclosures ("ED/2019/7") as they would relate to profit & loss statements of non-banking clients without any equity-accounted associates and joint ventures. 

You are asked to prepare a report for presentation to other accounting staff. After some contemplation, you decide to focus on the following three points in your report: 

(1) Provide an overview of the main aspects of the existing LAS 1 / AASB 101 profit or loss statement (and management performance measures) that ED/2019/7 proposes changes to explaining the reasons for IASB's proposed changes; 

(2) Provide a summary of the key changes proposed in IFRS ED/2019/7 and how they address the perceived deficiencies identified In (1); 

(3) Provide a position statement on whether or not the changes discussed in (2) are an improvement in financial reporting. Discuss specific changes separately and highlight any potential drawbacks. 

Your team leader makes it very clear that the paper should be presented in simple language and in an interesting, easy-to-read manner. 

Length. 

You must keep the report to a maximum word length of too words (+/-10%) excluding the reference list.

Answer rating: 100% (QA)

INTRODUCTION The IASB has proposed several changes to the way in which profit or loss statements are presented in its Exposure Draft 201917 General Pr... View the full answer