5 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME, AND CHANGES IN EQUITY

INTRODUCTION

The IASB’s Conceptual Framework emphasises the importance of information about the performance of an entity, which is useful to assess potential changes in the economic resources that are likely to be controlled in the future, predict future cash flows and form judgements about the effectiveness with which the entity might employ additional resources. For a period of time from mid-2004, the IASB and the FASB collaboratively pursued projects on Financial Statement Presentation (originally entitled Performance Reporting), which resulted in fundamental changes to the format and content of what is commonly referred to as the income statement (or the profit or loss account). This joint effort was bifurcated. The first phase of the project addressed what constituted a complete set of financial statements and a requirement ...

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