In Phase B of the joint FASB-IASB financial statement presentation project, the Boards are planning to release a plan to recast financial statements into a new format. The proposed new format of the statement of financial position would no longer divide assets and liabilities into separate categories on the balance sheet; rather, it groups assets and liabilities together under the categories of operating, investing, and financing activities while continuing to provide a separate section for stockholders equity.

Required: Discuss the proposed new format of the statement of financial position