Interestingly, CBRM proposes intraperiod income tax allocation of total income periodic tax expense among the three activity classes.
The detailed analyses of the amounts or changes in reported items in both CBRM statements apply the objective given at the onset of this section--investors need to understand how a company achieved its reported performance--and look behind the aggregations prevalent in financial reports.
The previous discussion examined two disaggregation structures contained in the CBRM and the FASB discussion paper.
The CBRM approach urges disaggregation first by category of business activities--operating, investing, and financing--net of related income taxes, and then by line item in each category, adding details about accrual transactions, estimates, and revaluations.
Using the CBRM and FASB/IASB reports, the CS disclosures, and the cash/accrual separation, Table 8 displays the different types and levels of disaggregation.
For example, the CBRM eliminates functional reporting and reports by natural classes, but the FASB proposal reports by functional area with natural class subcategories.
Similarly, with general agreement on the importance of clearly distinguishing between recurring and nonrecurring items, CS does this much better than CBRM and the FASB's DP.
The CBRM proposes that income statement line items be broken into their accrual, estimate, and revaluation components.