Fasb Project - Financial Statement Analysis

FASB Project - Financial Statement Analysis

ACC/541

June 17, 2013

FASB Project - Financial Statement Analysis

The Financial Accounting Standards Board Agenda is currently working on different projects, some of which are joint ventures of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The FASB provides a schedule with a time frame and a list of projects creating openness to facilitate the best solutions. One major project under the joint venture of the FASB and the IASB is the financial statement presentation project. Learning details about the underlying issues of the financial statement presentation project helps to understand whom the project affects, why the project is an issue, the potential impact the project has on financial statements, and how the project enhances the decision-making capabilities of financial information users.

Focus of the Financial Statement Presentation Project

The joint project of presentation of financial statements hopes to set a common standard that will direct organizations toward a more fluent and clear financial statement. Upon completion of this project, communication of financial statements between the upper management and users will be altered. The aim of this project is to allow the information provided in statements to be more convenient to the users to assist in making decisions and judgments regarding the organization (Project Updates, n.d.).

The project created two principles regarding the presentation of information of financial statements. These two principles will set the framework for this project. The first principle states that information should be presented in a way that segregates resources by the activity used. This is important to predict cash activity for the near or distant future. The second principle states that financial statement information should show an organized and consistent financial representation of an...