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Exposure Draft on statement of comprehensive income

May 27, 2010

The IASB has published for public comment an exposure draft (ED) proposing to require that all entities present profit or loss and other comprehensive income (OCI) in separate sections of a single continuous statement.

This would amend IAS 1, which currently allows entities a choice of presenting results of operations either (a) in a single, continuous statement similar to the proposal in the ED or (b) in two separate statements – an income statement and a statement of comprehensive income. Other proposals in the ED include:
  • Items of OCI should be grouped on the basis of whether they will eventually be 'recycled' (reclassified) into the profit or loss section of the statement of comprehensive income.
  • Income tax on items presented in OCI would be allocated between items that might be subsequently 'recycled' and those that will not be 'recycled', if the items in OCI are presented before tax (which is an option).
  • The title of the statement of comprehensive income would be changed to 'Statement of profit or loss and other comprehensive income' when referred to in IFRSs, though entities could use another title (such as 'statement of comprehensive income').
The proposals were jointly developed with the US Financial Accounting Standards Board (FASB), which is also seeking public comment on changes to the presentation of OCI as part of their recent financial instruments proposals (see Story Below). Comment deadline on ED/2010/5 Presentation of Items of Other Comprehensive Income is 30 September 2010. Click for IASB Press Release (PDF 100k). Link to IAS Plus Project Page.

 

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