INTERNATIONAL ACCOUNTING STANDARDS BOARD’S PERSPECTIVE ON PERFORMANCE REPORTING: WHAT HAS CHANGED FROM 1989 TO 2018?

Defining income and expenses as derivatives of assets and liabilities in all published conceptual frameworks shows that the International Accounting Standards Board has continued to adopt the balance sheet approach from 1989 to present. On the other hand, the inclusion of the concept of comprehensive income in the conceptual framework published in 2018 reveals that the importance given to performance reporting has increased. However, Board has not yet determined a principle approach to which items will be reported in other comprehensive income. Therefore, the Board is criticized for failing to provide a specific framework for performance reporting. This study examines the assigned role to performance reporting by International Accounting Standards Board from past to present based on the criticisms emerged in the literature. In addition, findings of the studies in literature on the usefulness of the comprehensive income presentation are discussed