Presenting information in financial reports: the GASB has published an exposure draft that would provide a conceptual basis for selecting communication methods to present information in financial reports.(The Accounting Angle)

In June 2004, the Governmental Accounting Standards Board issued an exposure draft of a proposed "concepts statement" entitled Communication Methods. A concepts statement does not set generally accepted accounting principles as such, but rather establishes guidelines for the board to follow in setting standards. This particular exposure draft proposes criteria to assist the board in determining how different types of information should be presented in a financial report.

MODES OF PRESENTATION

Financial reports present information in different ways:

* Financial statements. The most basic method of presenting financial information is in the form of financial statements. Accountants commonly refer to this manner of presentation as "display."

* Notes to the financial statements. Financial statements are routinely accompanied by notes. Accountants refer to this method of presentation as "disclosure." (Thus, the issue of whether a given item should be presented on the face of a financial statement or in a note would commonly be described as one of "display versus disclosure.")

* Supporting information. Financial reports often supplement the financial statements and notes with additional information. Such information may be specifically mandated by the GASB (required supplementary information) or presented voluntarily (supplementary information).

The exposure draft offers specific guidelines for the types of information that should be presented in each of these categories.