IASC recommends improving financial statements.The International Accounting Standards Committee's steering committee steer·ing committee n. A committee that sets agendas and schedules of business, as for a legislative body or other assemblage. steering committee Noun on presentation of financial statements has released a draft statement of principles (DSOP DSOP Draft Statement of Principles DSOP Defence School of Photography (UK Ministry of Defence) DSOP Degenerate Statistically Optimum Plan DSOP Dual Die Tsop ), Presentation of Financial Statements, that proposes improving the structure and content of financial statements. The standard that develops from the DSOP will replace International Accounting Standard no. 1, Disclosure of Accounting Policies, no. 5, Information to be Disclosed in Financial Statements, and no. 13, Presentation of Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. and Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. , which do not provide a structure for financial statement presentation and are not consistent with the IASC IASC International Accounting Standards Committee IASC Inter-Agency Standing Committee (United Nations) IASC International Arctic Science Committee IASC International Association for Statistical Computing framework for the preparation and presentation of financial statements. The steering committee said the proposals, when implemented, will make financial statements more comparable and make the information within them more accessible. The steering committee also said requirements within the new proposals were flexible and could be adapted to reflect the nature of each enterprise's operations. The DSOP covers * The definition and objective of financial statements. * Concepts for presentation, including underlying assumptions, materiality and aggregation of information and the consistency of presentation. * The selection, application and presentation of accounting policies. * The structure and content of the balance sheet and income statement. * The structure and content of notes to the financial statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. . Comments on the DSOP should be submitted in writing by June 30, 1995. Writers are asked to indicate whether they support the principles and guidance and, if not, to list the specific changes they propose, as well as any additional principles and guidance they consider necessary. Copies of the DSOP are available for 95 each by writing to the IASC, 167 Fleet Street, London EC4A 2ES, England, or by calling the IASC at 011-44-71-353-0565. |
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