The IASB has published for public comment proposals to improve the presentation of entities' financial statements in the Exposure Draft of proposed amendments to IAS 1 Presentation of Financial Statements. The IASB invites comments on the Exposure Draft by 17 July 2006.

The Exposure Draft results from the first stage (segment A) of the IASB's project on performance reporting and, if confirmed, would bring IAS 1 largely into line with the equivalent US standard. The second stage is being undertaken jointly with the FASB, and includes a reconsideration of the presentation and display of information in the financial statements. The FASB and the IASB have established an advisory group (the Joint International Group) to provide advice to the boards in working towards a discussion paper.

The proposed amendments to IAS 1 are aimed at enabling entities to present more clearly the financial information, in particular income and expenses, that is already required to be presented in accordance with the IASB's standards. Under the proposals an entity would present all income and expenses separately from changes in its equity that arise from transactions with its owners. Entities would have a choice of presenting income and expenses in a single statement or in two statements. An entity would also be required to include in its set of financial statements a statement showing its financial position (or balance sheet) at the beginning of the previous period.