In 2007, the CFA Institute Centre for Financial Market Integrity proposed a new financial model to replace the traditional earnings number.Which of the following characteristics does the proposed statement of changes in net assets available to stockholders exclude?
A)It recognizes all transactions and events that change net assets.
B)Line items would be reported by the nature of the item.
C)Line items would be reported by the function for which the resource is consumed.
D)It includes the effects of all investing and financing activities.

Question

Quizplus · Accepted Answer

The proposed statement of changes in net assets available to stockholders includes all transactions and events that change net assets, reports line items by the nature of the item, and includes the effects of all investing and financing activities. However, it does not report line items by the function for which the resource is consumed.