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Is "Operating Profit" Set in Stone? A Commentary on the New IASB's Exposure Draft "General Presentation and Disclosures"


  • Michele Bertoni

    (University of Trieste)

  • Bruno De Rosa

    (University of Trieste)

  • Paola Rossi

    (University of Trieste)


Financial statements are beneficial to users when the underlying economic relationships are presented clearly and concisely, thereby improving the comparability and understandability of financial information. In order to improve these qualitative characteristics, the International Accounting Standards Board (IASB) has published in December 2019, as part of its Primary Financial Statements project, an Exposure Draft "General Presentation and Disclosures" (ED /2019/7) to replace IAS 1 "Presentation of Financial Statements". The aim of this paper is to analyse the main changes proposed by the IASB to the structure of the financial statements, highlight their advantages and disadvantages, and engage with the relevant literature.

Suggested Citation

  • Michele Bertoni & Bruno De Rosa & Paola Rossi, 2020. "Is "Operating Profit" Set in Stone? A Commentary on the New IASB's Exposure Draft "General Presentation and Disclosures"," MIC 2020: The 20th Management International Conference,, University of Primorska Press.
  • Handle: RePEc:prp:micp20:101-111

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    References listed on IDEAS

    1. Gus De Franco & S.P. Kothari & Rodrigo S. Verdi, 2011. "The Benefits of Financial Statement Comparability," Journal of Accounting Research, Wiley Blackwell, vol. 49(4), pages 895-931, September.
    2. Elizabeth A. Gordon & Elaine Henry & Bjorn N. Jorgensen & Cheryl L. Linthicum, 2017. "Flexibility in cash-flow classification under IFRS: determinants and consequences," Review of Accounting Studies, Springer, vol. 22(2), pages 839-872, June.
    3. Richard Barker, 2010. "The operating‐financing distinction in financial reporting," Accounting and Business Research, Taylor & Francis Journals, vol. 40(4), pages 391-403.
    4. Dirk E. Black & Theodore E. Christensen & Jack T. Ciesielski & Benjamin C. Whipple, 2018. "Non†GAAP reporting: Evidence from academia and current practice," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 45(3-4), pages 259-294, March.
    5. Graham, John R. & Harvey, Campbell R. & Rajgopal, Shiva, 2005. "The economic implications of corporate financial reporting," Journal of Accounting and Economics, Elsevier, vol. 40(1-3), pages 3-73, December.
    6. Ahsan Habib, 2010. "Value relevance of alternative accounting performance measures: Australian evidence," Accounting Research Journal, Emerald Group Publishing Limited, vol. 23(2), pages 190-212, September.
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