The IASB, FASB, and UK ASB (the Boards) discussed priorities and topics for moving forward on a standard on reporting comprehensive income. The short-term goal of this project is to develop a discussion paper that will include the preliminary views of the Boards on several issues, including:

• Should there be a single statement of comprehensive income, which includes a subtotal similar to the concept of "income from continuing operations" or "profit and loss"?
• Agreement on what constitutes a primary financial statement.
• Agreement on the number of years to be presented in comparative financial statements and disclosures.
• Agreement on whether to require the direct method for the statement of cash flows.

In addition, the Boards will discuss (and if possible include preliminary views in the discussion paper) on the following:

• Should there be the notion of "recycling"?
• Develop principles for disaggregating information on each required financial statement.
• Defining subtotals and totals required to be reported.

The Board noted that the key and most difficult issue is the notion of whether recycling should be permitted and wanted this issue to be addressed immediately. For example, if the Board agreed that recycling should not be allowed, the following items would be recognised immediately in profit or loss (and not recognised in equity is as the current requirement):

• Gains/losses on cash flow hedges.
• FX gains or losses currently recognised in equity.
• Gains/losses on assets classified as available for sale.

In addition this project is likely to affect:

• Whether the notion of "cash equivalents" in the cash flow statement should exist.
• Should EPS be presented and if so how.

The Boards concluded that it intends to issue a discussion paper in about one year on as much of the above as possible. The Boards will also form a joint working group made up of 15-20 members (from all backgrounds) to assist the staff with this project. The Board also noted that this project is intended to incorporate all industries.