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General presentations and disclosures

Michael Stewart explores the key proposals for a new accounting standard that will govern the structure and content of financial statements.

The ED proposes four new categories into which items of income and expense would be classified. These are:

Categories 2, 3 and 4 are tightly defined but 1 is not. The operating category would be the default for items of income or expense not falling within another category and would contain income and expenses from the company’s ‘main business activities’. Management would determine what these are and would describe the nature of the company’s operations and its main business activities in the notes.