BCZ19 The Exposure Draft Amendments to IAS 1 Presentation of Financial Statements - A Revised Presentation (2006 Exposure Draft) proposed changes to the titles of some of the financial statements - from 'balance sheet' to 'statement of financial position', from 'income statement' to 'statement of profit or loss' and from 'cash flow statement' to 'statement of cash flows'. In addition, the 2006 Exposure Draft proposed a 'statement of recognised income and expense' and that all owner changes in equity should be included in a 'statement of changes in equity'. The IASB did not propose to make any of these changes of nomenclature mandatory.
BCZ20 Many respondents opposed the proposed changes, pointing out that the existing titles had a long tradition and were well understood. However, the IASB reaffirmed its view that the proposed new titles better reflect the function of each financial statement, and pointed out that an entity could choose to use other titles in its financial report.
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