More Detailed U.S. Income Statements May Be Elusive Goal (1)

It’s one of the top complaints from investors and analysts about financial reporting—company income statements don’t give them enough detail to understand the ins and outs of a business’s financial health.

They point to the proliferation of special, unsanctioned measures companies use to tout their performance as proof that they can’t get what they need by looking at a company’s income statement alone.

U.S. accounting rulemakers are trying to change that.

The Financial Accounting Standards Board is in the early stages of improving what it calls “performance reporting,” in particular rules around breaking down details about expenses in the all-important ...