Question

Evaluate Stephen Moehrle article 2010) on response to the Financial Accounting Standards Board's and International Accounting Standard Boatd's Joint Discussion paper Entitled preliminary views on Financial Statement Presentation.

Answer 1

Overall, the Boards’ discussion paper entitled Preliminary Views on Financial Statement Presentation offers several appealing proposals, but has potential problems as well. The timing of the proposal is questionable as the document seems to contain an implicit conceptual framework at the same time that a comprehensive conceptual framework is being developed by the FASB. Also, the proposed format changes would complicate the learning process around access and use of XBRL and data tag-based reports. Finally, it provide responses to several specific objectives and principles-related questions posed by the Boards. These responses relate to:

a) Timing and concurrent changes;

b) User learning issues and impediments to this learning;

c) Objectives and terminology;

d) Categorizing activities—operating, business and financing; and

e) Categorizing assets and liabilities—the management approach.

To sum up, it can be said that the financial statement presentation project as having great potential to improve the usefulness of financial statements.