Presentation and Disclosure (B6.7)

Principles relating to Presentation and Discloser:

Income and Expenses in Profit or Loss: Generally recognized in the statement of profit or loss, unless including them in Other Comprehensive Income (OCI) enhances relevance or faithful representation.

Recycling of OCI Items: IAS 1 suggests disclosing whether OCI items will be reclassified into profit or loss.

Contentious Issue: There is debate on whether all, some, or no OCI items should be recycled.

Conceptual Framework Guidance: Recycling is appropriate when it enhances relevance or faithful representation, but not if the recycling period cannot be clearly identified.

Focus on Enhancing Relevance and Faithful Representation: The key consideration in recycling decisions is improving the quality of information for users.