4-51As mentioned in the opening story, the FASB and the IASB are collaborating on a joint project related to presentation offinancial statements. In 2008, these two groups issued an exposure draft that presented examples of what these new financial statements might look like. Recently, they conducted field tests on two groups: preparers and users. Preparerswere asked to recast their financial statements and then comment on the results. Users examined the recast statements and commented on their usefulness. One part of the field test asked analysts to indicate which primary performance metric they use or create from a company’s income statement. They were provided with the following options: (a) Net income; (b) Pretax income; (c) Incomebefore interest and taxes (EBIT); d) Income before interest, taxes, depreciation, and amortization (EBITDA); (e) Operating income; (f) Comprehensive income; and (g) Other. The adjacent chart highlights their responses. WHAT’S YOUR PRINCIPLEDIFFERENT INCOME CONCEPTSAs indicated, Operating income (31%) and EBITDA (27%) were identified as the two primary performance metrics that respondents use or create from a company’s income statement. A majority of the respondents identified a primary performance metric that uses net income as its foundation (pretax income would be in this group). Clearly, users and preparers look at more than just the bottom-line income number, which supports the common practice of providing subtotals within the income statement.