Dataline: Presentation of comprehensive income -- The FASB issues final standard on presenting other comprehensive income (Superseded by Dataline 2012-01 on 01/19/2012) (No. 2011-24)
Dataline
The FASB has issued a final standard (ASU 2011-05) requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The option to present items of other comprehensive income in the statement of changes in equity is eliminated. This Dataline takes a look at the new guidance.
SUPERSEDED
Refer to Dataline 2012-01 for discussion of the new comprehensive income standard, as subsequently amended by the FASB.
On June 16, the FASB issued a final standard requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The option to present items of other comprehensive income in the statement of changes in equity is eliminated. As a result, the presentation of other comprehensive income will be broadly aligned with IFRS.
The new requirements are generally effective for public entities in fiscal years (including interim periods) beginning after December 15, 2011, whereas nonpublic entities will generally only apply the new requirements for the first time in their 2012 year-end financial statements. Early adoption is permitted. Full retrospective application is required.