Dataline: Statement of Comprehensive Income--The FASB has proposed to require a new primary financial statement (No. 2010-26)

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On May 26, 2010, the FASB issued a proposal to require a new primary financial statement, referred to as the statement of comprehensive income that would replace the income statement. The new statement would contain subtotals for net income and other comprehensive income within a single continuous statement. The components of net income and other comprehensive income would not change as part of this proposal, and earnings-per-share would continue to be based on net income. The IASB has issued a similar proposal that calls for a statement of profit or loss and other comprehensive income. Although the components of other comprehensive income and the treatment of those components (i.e., recycling) vary between U.S. GAAP and IFRS, the proposals are intended to improve consistency in how comprehensive income is presented under the two frameworks. The FASB plans to issue a final standard in the first half of 2011. A final IASB amendment is expected in the second half of 2010. This Dataline provides an overview of the key provisions of the FASB’s proposal, includes a comparison with the IASB's proposal, and provides PwC's insights on selected matters.