SUMMARY OF BOARD DECISIONS
Summary of Board decisions 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 are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update.
October 21, 2011 FASB Board MeetingPresentation of comprehensive income: reclassifications of items of other comprehensive income. The Board discussed the operational concerns of stakeholders about the presentation requirements for reclassification adjustments in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income.
The Board decided that the specific requirement to present items that are reclassified from other comprehensive income to net income alongside their respective components of net income and other comprehensive income will be deferred. Therefore, those requirements will not be effective for public entities for fiscal years and interim periods within those years beginning after December 15, 2011. Similarly, those requirements also will not be effective for nonpublic entities for fiscal years ending after December 15, 2012. The Board directed the staff to draft a proposed Update for vote by written ballot that would supersede the applicable paragraphs of pending content in Topic 220, effectively deferring those requirements until the Board can consider stakeholders’ concerns about how they are applied. Key provisions for those requirements pertain primarily to paragraphs 220-10-45-17, 220-10-55-7 through 55-9, and 220-10-55-18. The Board decided that the comment period on the Exposure Draft will be no shorter than 15 days.
While the Board is considering the operational concerns about presentation requirements for reclassification adjustments, entities will continue to report reclassifications out of accumulated other comprehensive income according to the applicable provisions in effect before Update 2011-05.
The Board’s decisions do not affect the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities will be required to apply that requirement in fiscal years and interim periods within those years beginning after December 15, 2011. Nonpublic entities will be required to begin applying that requirement in fiscal years ending after December 15, 2012, and interim and annual periods thereafter.