2012 Volume 28 Pages 83-92
This study adresses 4 points. Firstly, the basic concept of "the Staff Draft of the Financial Statement Presentation" issued by the IASB and the FASB. Secondly, the improved points from "the Discussion Paper of the Financial Statement Presentation" issued by the IASB and the FASB. Thirdly, the analysis of the opinions stated during the outreach activity. Lastly, other comments on the staff draft. Defining operating profit under the Staff Draft would result in presenting sustainable income. Therefore, I think it an excellent proposal that would improve the current lASlPresentation of Financial Statements. From the viewpoint of analysts, it would be ideal to present the direct method of the statement of cash flow. However, taking into the consideration of the costs shouldered by preparers, would be it appropriate to present the indirect method of the statement of cash flows with additional direct method cash flow information that analysts would require, such as cash received from customers. In addition, it is suggested that the subtotal within the operating category showing operating cash flows before deducting capital expenditures should be presented in the statement of cash flows.
