Project Update

Statement of Comprehensive Income—Joint Project of the IASB and FASB

Last updated on June 2, 2011. Please refer to the Current Technical Plan for more information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

This project update summarizes the project activities and decisions of the IASB and the FASB (Boards). It was prepared by the staff and is for the information and convenience of their constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process.

Project Objective
Due Process Documents
*Decisions Reached at Last Meeting
*Summary of Decisions Reached to Date
Next Steps
*Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this joint project is to provide guidance on reporting comprehensive income for all entities.

Due Process Documents

On May 26, 2010, the Board issued a proposed Accounting Standards Update, Statement of Comprehensive Income. The comment period ended on September 30, 2010.

Statement of Comprehensive Income Proposed Update  
Comment Letters on Proposed Update

*Decisions Reached at the Last Meeting (May 26, 2011)

The Board met to discuss a change to the effective date for the final Accounting Standards Update, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, and to decide whether to apply this change to nonpublic entities only.

The Board decided to include an extended effective date for nonpublic entities only, which will require nonpublic entities to apply the guidance in the Update for fiscal years ending after December 15, 2012, and interim periods thereafter. Public entities will be required to apply the guidance in the Update for fiscal years, and the interim periods within those years, beginning after December 15, 2011, as decided at the November 2010 joint Board meeting.

*Summary of Decisions Reached to Date (As of May 26, 2011)

November 17, 2010

The Boards discussed a number of issues raised by respondents to the FASB and IASB Exposure Drafts. The Boards tentatively decided:

  1. To proceed with the project as originally planned, as opposed to delaying the project until the Boards can develop a consistent basis for determining which elements should be presented in other comprehensive income and when reclassification to net income is appropriate.
  2. To require entities to present net income and other comprehensive income either in a single continuous statement or in two separate, but consecutive, statements.
  3. That the standards would be effective as of the beginning of a fiscal reporting year that begins after December 15, 2011, for U.S. GAAP and for fiscal reporting years that begin on or after January 1, 2012, for IFRS.
  4. To affirm the tentative decision to require full retrospective application for the final standard.
  5. To affirm the FASB’s tentative decision to require reclassification adjustments to be presented in both other comprehensive income and net income. The Boards also tentatively decided to affirm both Boards’ decision to allow items of other comprehensive income to be presented either net of tax with details in the notes or gross of tax with each item’s tax effect displayed parenthetically, and to retain the current calculation of earnings per share based on net income/(profit or loss).

The IASB affirmed its tentative decision to require items of other comprehensive income that will be reclassified through profit or loss to be presented separately from items that will not be reclassified through net income.

The FASB affirmed that it will retain the requirement in FASB Accounting Standards CodificationTM Topic 220, Comprehensive Income, to present the allocation of items of other comprehensive income and net income attributable to noncontrolling interests and the controlling financial interest holders of a company separately. This presentation would be on the face of the continuous statement of comprehensive income or both statements, depending on whether the two-statement approach is presented.

The Boards directed the staffs to begin the balloting process for the final standard.

October 22, 2010

The Boards discussed the comment letters received on their respective Exposure Drafts relating to the presentation of other comprehensive income.

The Boards instructed the staff to focus on the matter of whether entities should report profit or loss (net income) and other comprehensive income in one or two statements.

Next Steps

The Boards directed the staff to draft a final Accounting Standards Update (Update). Please refer to the Current Technical Plan for more information about the project timeline.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

*May 26, 2011 FASB Board Meeting—Effective Dates
November 17, 2010 Joint Board Meeting—Major Issues from Respondents
October 22, 2010 Joint Board Meeting—Summary of Significant Comments on the Proposed Update
May 4, 2010 Joint Board Meeting—Title of Proposed Accounting Standards Update
April 14, 2010 FASB Board Meeting—April deliberations
February 2, 2010 Joint Board Meeting—Plan to Issue Proposed Accounting Standards Update
October 27, 2009 Joint Board Meeting—Agenda Announcement

Background Information

In July 2009, at the joint FASB and IASB financial instrument project meeting, the Boards made a preliminary decision that an entity should present a single statement of comprehensive income. This issue was initially raised during deliberations for the financial statement presentation project, but the Boards decided to address it in the near-term in a separate project. At the October 2009 joint Board meeting, the Boards unanimously decided to work together to develop guidance on the preparation of a single statement of comprehensive income that is convergent but will be issued separately by the IASB and FASB.

Contact Information

Patricia Donoghue
Project Manager

Jon Arnar Baldurs
Project Manager