The FASB issued a final standard in June 2011 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. In response to concerns from some preparers, the FASB issued an amendment in December 2011 to indefinitely defer one of the requirements contained in its June 2011 final standard. That requirement called for reclassification adjustments from accumulated other comprehensive income to be measured and presented by income statement line item in net income and also in other comprehensive income.
In Dataline 2011-24 we discussed the final standard as originally issued. Now that the FASB has amended the standard to defer the reclassification reporting requirement, we have updated the discussion from Dataline 2011-24 in this new Dataline to reflect the amended standard along with our additional insight.
The new requirements and the related deferral 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.