IASB Proposals Seek More Transparency in Financial Statements

Companies must standardize the way they calculate operating profits and explain when they decide to use non-standard measures under proposals released by the International Accounting Standards Board.

IASB published the proposals Dec. 17, asking for comments by June 30, 2020, before producing a final version of the changes by the end of the year. The proposals would require more comparable information in the statement of profit or loss and a more transparent approach to reporting management performance measures.

• Subtotals, including operating profit, would be added to the income statement under the IASB proposal, avoiding the problem of companies ...