The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation, the FASB, or the Financial Accounting Foundation. Financial Statement Presentation Update a joint FASB/IASB project August 2010 International Financial Reporting Standards © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Project timeline 2 Timeline October 2008Discussion Paper issued (6-month comment period) July 2010Staff draft issued Q – Q4 2010Field testing & extended stakeholder outreach program Q1 2011Exposure Draft Q4 2011Final standard © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Why a project on financial stat. presentation? Today: –No common format for financial statements –Relationships between individual statements unclear –Dissimilar items are aggregated into highly simplified, condensed amounts Proposals: –Provide a common organisation and presentation of information in financial statements –Detail on the nature of (and changes in) assets, liabilities, income, expenses and cash flows 3 © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Project Objective and Scope Objective: Establish a global standard that will guide the organisation and presentation of information in the financial statements –Directly affect how management communicates information to users of its financial statements –Improve the usefulness of financial statement information to help users in their decision-making Scope: –All business entities –All financial statements 4 © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Key features of the proposed model Common sections and categories Disaggregation by function, nature and measurement bases Direct method for cash flows and a reconciliation of operating income to operating cash flows Analysis of changes in balance sheet line items Remeasurement information in a single note 5 © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Core presentation principles Information should be presented in the financial statements in a manner that: Portrays a cohesive financial picture of an entity’s activities –Relationships are clear, statements are complementary Disaggregates information so that it explains the components of an entity’s financial position and financial performance –Consider disaggregation by function, nature and measurement basis in each financial statement 6 © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Structure of the financial statements 7 Statement of Financial Position Statement of Comprehensive Income Statement of Cash Flows Business section Operating category Operating finance subcategory Investing category Financing section Debt category Debt and equity Equity category Multi-category transaction section Income tax section Discontinued operation section Discontinued operation section, net of tax Discontinued operation section Other comprehensive income, net of tax © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Statement of Financial Position 8 Assets and liabilities classified in: –sections/categories –short- and long-term subcategories or arranged in order of liquidity Display total assets and total liabilities at bottom of SFP Eliminate concept of cash equivalents – classify as short-term investments Classify cash balance in operating category © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Statement of Comprehensive Income 9 Profit or loss (relevant subtotal) –Disaggregate by function or nature on the face, with by nature in the notes Other comprehensive income: –whether items relate to operating, investing, or financing activities –OCI items recycled from OCI section to other sections or categories A single statement that displays in two parts: © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

Statement of Cash Flows Present all cash flows using a direct method –Provide a meaningful depiction of how an entity generates and uses cash –Disaggregate and present gross cash receipts and gross payments –Consider timing differences between current period cash flows and related amounts recognised in the SCI Also a reconciliation of operating income to operating cash flows 10 © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.

11 Questions or comments? Expressions of individual views by members of the IASB, FASB and their staff are encouraged. The views expressed in this presentation are those of the presenter. Official positions of the IASB and FASB on accounting matters are determined only after extensive due process and deliberation. © 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK.