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A revised IAS1 was issued on 6th September 2007 with changes due to take effect from the period beginning 1st January 2009. The changes include introducing a statement of comprehensive income. This includes the combination of the previous income statement, along with changes in equity from transactions with non-owners. Reclassification adjustments are also presented here. This change will now mean that all gains and losses are presented in a single statement. However, there is still an option giving financial statement preparers the choice of presenting the accounts in one or two statements. This can either be in a single statement of comprehensive income or, in an income statement and a separate statement of comprehensive income. Dividends and share amounts, which were previously presented in the income statement, are now shown in the statement of changes in equity, along with changes in transactions relating to owners. This again is in the move to put shared characteristics together.

Another change was to names of some financial statements, for example the balance sheet is now known as the statement of financial position.
These changes now mean that the new IAS 1 has been bought largely in line with FASB’s statement 130. This will help the move towards the harmonisation in the preparation of accounts and allow for better comparability globally. This will save the costs incurred when previously having to compare financial information internationally and will mean users will only have to be able to understand one way of presenting the information. “EFRAGS analysis concluded that the revised IAS 1 will to a certain extent improve the quality of the financial information and its implementation in the EU will therefore benefit users.” http://ec.europa.eu/internal_market/accounting/docs/effect_study_en.pdf (Accessed 30/10/08).

The addition of statement of comprehensive income will mean that users will be able to view company...