Changing the face of profit and loss accounts

The IASB’s recent Exposure Draft (ED), General Presentation and Disclosures, contains far-reaching proposals to reform the presentation of income statements through the introduction of new sub-totals, so that previously undefined and optional terms, such as operating profits, become mandatory. The ED also aims to ensure that use of measures not defined by IFRS is subject to more discipline, including audit. The project is a favourite one of Board chairman, Hans Hoogervorst, who has described it as “a game-changer”. ¹ This article sets out the key elements of the ED, and incorporates EFRAG’s preliminary views on the Board’s ideas.