In August 2012, the FASB issued an exposure draft of a proposal requiring new footnote disclosures for reclassifications from accumulated other comprehensive income to net income. Read on for details and PwC observations.
In August 2012, the FASB issued an exposure draft of a proposal requiring new footnote disclosures for reclassifications from accumulated other comprehensive income to net income. Among other things, an entity would be required to disclose, using a tabular format, the amount reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. An entity would not need to show the income statement line item affected for certain components such as net periodic pension cost. Comments on the exposure draft are due by October 15, 2012.
The effective date of the proposed disclosures has not been determined. However, the FASB has indicated a preference for the requirements to be effective for public entities for annual reporting periods ending after December 15, 2012, and for interim and annual periods thereafter. Non-public companies would be expected to adopt the standard one year later.
This Dataline looks at the key provisions of the proposal and offers our observations.
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