The Formulation of Financial Statements: A Proposal for Change

SYNOPSIS This paper proposes a new framework for financial statement presentation that provides users with more detailed understanding of the relationship between cash and accrual information earning power. To accomplish these objectives, we provide classifications assets, liabilities, equity, income, flow. Assets are classified as either operating or nonoperating, economic financial, monetary nonmonetary. Liabilities equity initially under title “means financing assets.” Next, they nonmonetary further either: (1) expected requirements during next reporting period, (2) in future periods, (3) no requirements. The income utilizes current prior period flow categories. flows is developed along lines primary operations nonoperating economic/financial activities.