In 2019, the IASB issued an Exposure Draft: General Presentation and Disclosures in which the board laid out its proposals for a reorganisation particularly of the profit & loss statement (P&L). The main idea is to present financial performance in a more economic way, i.e. splitting down the P&L into operating, investing and financial sections – similar to the cash flow statement. In this post we shed light on one of the main ideas of this draft: the strong emphasis on performance presentation of ‘integral’ joint ventures and associates – and the valuation pitfalls that this new idea might bring.
LINK: IASB’s Financial Presentation Project: The EV/Equity Value Financial Analysis Problem
