Accounting Changes Promise More Uniform Global Income Statements

The global accounting standard-setter on Tuesday published sweeping changes to income statement requirements designed to provide investors with more consistent and easily comparable information about companies’ financial health.

The new requirements adopted by the International Accounting Standards Board will define for the first time frequently used measures such as operating profit and ask companies to reconcile unofficial accounting information with their audited financials. The new standards will take effect starting in fiscal year 2027 and will replace International Accounting Standards 1 Presentation of Financial Statements, which was first issued in 1975.

“It plugs the gaps,” IASB chair Andreas Barckow said ...