Question

In Phase B of the joint FASB-IASB financial statement presentation project, the Boards are planning to release a plan to recast financial statements into a new format. The proposed new format of the statement of financial position would no longer divide assets and liabilities into separate categories on the balance sheet; rather, it groups assets and liabilities together under the categories of operating, investing, and financing activities while continuing to provide a separate section for stockholders’ equity.

Required: Discuss the proposed new format of the statement of financial position

Answer 1

The following format which in the tabular format present the financial statement.

This table shows classification of assets and liabilities into the various sections,

and majorily divided into three activities.

statement of financial position	statement of cash flow	statement of comprehensive income
Business	Business	Business
Financing	Financing	Financing
Income Taxes	Income Taxes	Income Taxes
Discontinued operations	Discontinued operations	Discontinued operations

The first column depicts financial position which have business category shows operating and investing asssets and liabilities. 2nd category shows finacing assets and liabilities.

whereas The Second column depicts cash flow which have business category shows operating and investing cash flows , 2nd category shows financing aseet and liabilities cash flow.

Last colonm of table depicts comprehensive income which hve business category shows operating and investing income and expense, 2nd category shows finnancial asset income and liabilities expenses.

In the FASB-IASB financial statement presentation report, the presentation of equity is shown seperatly.