Other comprehensive income — Comment letter analysis
The staff presented the Board with a summary of the comment letters in response to Exposure Draft, Presentation of Items of Other Comprehensive Income which closed on 30 September 2010. The Board received 139 comment letters from various constituents across all geographic regions.
Respondents generally agreed with the proposal to combine the statement of profit and loss and the statement of other comprehensive income (OCI) into a single performance statement and rename the "Statement of profit or loss and other comprehensive income." However, respondents did not support the proposal to remove the option within IAS 1 to present all items of income and expense in two statements.
Even though respondents were generally supportive of the proposal, many suggested that the Board also needed to address the conceptual basis behind the use of other comprehensive income within financial reporting as well as address the issue of recycling of amounts recognised within OCI.
One Board member asked what the view of financial statement users were with respect to the exposure draft. The staff mentioned that users were generally supportive although two users did not support the proposals.
Another Board member mentioned that constituents already have concerns over the different philosophies of recycling amounts within OCI between the FASB and IASB. Additionally, the Board keeps increasing the usage of recognising items within OCI such as the credit component of financial liabilities measured at fair value. Therefore addressing these issues are an important task for the Board to undertake.
A couple of Board members mentioned their feeling that there is a lack of enthusiasm for the project with one stating she has heard the Board is "putting the carriage before the horse" by not addressing the conceptual issues around OCI before addressing the presentation issues. However, one Board member retorted that she feels that including profit and loss and OCI in a single statement is appropriate because of the lack of conceptual consideration around what constitutes recognition in OCI.