It looks like we are headed for some changes to our familiar income statement and balance sheet.

Having been invented in 1494 by Lucia Pacoli in Venice, the balance sheet becomes history and is now known as a “statement of financial position”.

And instead of the income statement, we’ll now have to read a “statement of comprehensive income”.

Sue Ludolph, Project Director of Accounting at The South African Institute of Chartered Accountants (SAICA) says the new standard is aimed at improving users’ ability to understand, analyse and compare financial statements.

She said a statement of comprehensive income has two sections.

“The first section will include the income statement as we know it today, ending with profit for the year. The second section, directly underneath, contains other comprehensive income. The final total on this statement is total comprehensive income for the year.”

Other comprehensive income comprises items of income and expenses that are not recognised in profit or loss as required or permitted by International Financial Reporting Standards (IFRS).

“The revised standard enables accountants to present items of income and expense, and components of other comprehensive income in two ways. Either in a single statement of comprehensive income with subtotals, or in two separate statements - a separate income statement, followed by a statement of comprehensive income,” said Ludolph.

Full article on MoneyWeb
Anyone know much about this, or any other changes that are being tabled?