Proceedings

eassessment, it is easily to make it, thus respecting the qualitative cost-benefit
constraint. We recommend this statement to be part of a set of financial statements
and not to be just a certain note in the annexes.
IASC revised the IAS 1 standard in 1997, to introduce a second statement of the
results regarding the changes in equity which may reflect either all changes in equity
or changes in equity other than transactions with owners. We believe that the
objective of the two statements is so different that the IASB would not have asked the
economic entities to make a choice. The statement of comprehensive income, called
by the IASB –The statement of gains and losses, was a statement that reflects the
overall performance of the economic entity, while the situation of changes in equity,
as the title suggests, was a statement that presented changes in equity and was quite
complex to present relevant information.
In 1998, ASB in Australia published an exposé-survey (ED 93), which proposed a
unique statement to reflect performance, with an overview presentation in a separate
statement of changes in equity which are not attributed to owners. The need for a
unique statement to reflect the performance has become increasingly evident
worldwide. In this regard, in 1998, the representatives of the Council of Accounting
Rules in Canada belonging to ICCA attended, with the representatives from the U.S.
standardization bodies, New Zealand, Australia and Britain, as well as with the
representatives of the IASB (this group of regulators is known as the G4 +1) the
publishing of a special report on a new presentation of the performance
statement. The G4 +1 proposals have focused mostly on presenting the performance
components and not on establishing and measuring the performance. In other words, it
was about the way in which specific performance items were grouped and presented
in such a way as to serve the objectives of financial statements. The unique statement
of the performance proposed by the G4+1 distinguished the elements specific to
operating activities from other elements specific to other gains and losses, according
to four basic criteria: operating activities/activities outside operation, recurring/nonrecurring
items, items that are not owned/held items, internal/external events.
Currently, the IASB calls that both net income and unrealized holdings gains or losses
(other comprehensive income) will be included in a single comprehensive income
statement. In this sense, art. 81 of IAS 1 Presentation of Financial Statement allows
economic entities to choose between two ways to present all items of income and
expense recognised in a period:
(a) a single statement of comprehensive income, or
(b) two statements: a statement displaying components of profit or loss
(separate income statement) and a second statement beginning with profit or
loss and displaying components of other comprehensive income (statement of
comprehensive income).
IAS 1 defines the notion of „other comprehensive income” as:
„income comprises items of income and expense (including reclassification
adjustments) that are not recognised in profit or loss as required or permitted
by other IFRSs”.
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