The project will determine the usefulness of adding certain aggregations, classifications, line items and subtotals covered in annual and interim financial statements.
As part of this project, the FASB will examine whether financial statements provide sufficient information to allow investors and others to calculate key financial measures, such as ratios and other metrics.
Examples of items that may be required to determine key measurements include:
- amortization, and
- research and development expenses
The FASB plans to coordinate its efforts with those of the International Accounting Standards Board, which recently adopted a similar project.