ther regulatory bodies therefore acted urgently initiating a raft of new amendments aimed at halting firms from concealing underperforming portfolios through ingenious accounting practices (Brodie, 2008). Consequently the IASB and the FASB issued amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures that permit the reclassification of some financial instruments and require consequential additional disclosures in respect of any reclassification made. These amendments were issued to address the current market conditions and, due to its urgency, were issued without the normal due process (IASB & FASB, 2009).
The Financial Statement Presentation is one of the seven joint IASB and FASB financial accounting projects set to concluded by the year 2011 in three phases [See Table 1]. The main preposition was the introduction of a cohesive, disaggregated, and liquid and flexible. The FSP Discussion Paper (DP) – Preliminary views on Financial Statement Presentation is founded on three premises which require a presentation of the FSP in such a way that:
‘establish a standard that will guide the organization and presentation of information in the financial statements...the management of an entity communicates financial statement information to users of financial statements, such as present and potential equity investors, lenders, and other creditors...improve the usefulness of the information provided in an entity’s financial statements to help users make decisions in their capacity as capital providers.’ (IASB and FASB, 2009, Pg.1)
The board’s primary intention is for firms to present a singular financial statement with the objective of enhancing the financial presentation model that is analogous and uniform hence decipherable to the users. The projected presentation model necessitates a firm to present the financial information in a way that depicts how it operates its business disengaged from data