This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Journal entry — Other comprehensive income — FASB finalizes deferral of a portion of ASU 2011-05

Published on: Aug 17, 2012

Yesterday, the FASB issued a proposed ASU1 that would finalize the ASU 2011-122 deferral of the provisions in ASU 2011-053 related to reclassification adjustments out of accumulated other comprehensive income (AOCI). (For more information about the ASU 2011-12 deferral, see Deloitte’s December 23, 2011, Heads Up.) The Board’s decision stems from its outreach to users and preparers, for whom the costs of the provisions on reclassification adjustments outweigh the benefits.

Although the proposed ASU would not reinstate the ASU 2011-05 provisions, it would enhance the disclosure requirements for items reclassified out of AOCI. Specifically, the proposal would:

[R]equire an entity to provide enhanced disclosures to present separately by component reclassifications out of [AOCI]. In addition, an entity would be required to provide a tabular disclosure of the effect of items reclassified out of [AOCI] on the respective line items of net income but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety. For other reclassification items that are not required under U.S. GAAP to be reclassified directly to net income in their entirety, the new tabular disclosure only would require a cross-reference to other disclosures currently required under U.S. GAAP for those items.

Comments on the proposed ASU are due by October 15, 2012. Be on the lookout for Deloitte’s upcoming Heads Up on the proposal.

 


[1] FASB Proposed Accounting Standards Update, Presentation of Items Reclassified Out of Accumulated Other Comprehensive Income.

[2] FASB Accounting Standards Update No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.

[3] FASB Accounting Standards Update No. 2011-05, Presentation of Comprehensive Income.

Accounting Journal Entries Image

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.