Members of the International Accounting Standards Board tentatively decided to explore whether they should require companies to present subtotals representing earnings before interest and tax (EBIT) and/or operating profit.
The board also plans to look at removing options for presenting items of interest and expense under international financial reporting standards (IFRS).
Early indications are that this will have a direct impact on pensions accounting because one of the areas staff plan to look at is the presentation of net interest cost on a defined benefit (DB) pension liability.
IAS 19 Employee Benefits does not specify how DB sponsors should present net interest cost on the net defined benefit liability.
As a result, different entities present this cost in different locations.
In addition, the board signalled that it wanted to look at giving guidance on the use of performance measures, as well as explore better ways to communicate information about other comprehensive income.
Among other decisions taken by the board on its Conceptual Framework project, IASB members tentatively decided to carry forward the existing chapter dealing with capital and capital maintenance into the revised framework.
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