The IMA Financial Reporting Committee (FRC or Committee) issued a comment letter in response to IFRS Exposure Draft ED/2019/7, General Presentation and Disclosure, issued by the International Accounting Standards Board (IASB).  Among its amendments, if adopted, the proposal would change the current format of the profit and loss statement (income statement) in a way that is similar to the statement of cash flow’s three categories:  operating, investing, and financing.  In addition, the proposal modifies current required disclosures with the stated goal of providing more information about entity performance.

In its response, the FRC states that it supports the IASB’s efforts to improve the basic financial statements, and it agrees generally with the proposed changes to the profit and loss statement.  However, the Committee expresses concerns with aspects of the exposure draft, particularly around disclosures of unusual items and management performance measures, which include certain nonGAAP items.