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.

Financial Statement Presentation – Other Comprehensive Income

Date recorded:

Proposal for limited scope amendment to IAS 1 Presentation of Financial Statements

The staff recommended that the Board eliminate the option in paragraph 81 of IAS 1 that permits an entity to present all items of income and expense recognised in a period in two statements. In recommending that the two statement option be removed, the staff recommended that the Board decide to require that a single statement of comprehensive income be displayed with two sections: profit or loss and other comprehensive income (OCI).

The Board tentatively agreed with the staff recommendation to require a single statement of comprehensive income with the two sections (as described above). The Board also emphasised that this proposal would not change items that can or must be presented in OCI or whether an item must be reclassified upon derecognition.

The staff recommended that the Board tentatively decide to require that components of OCI that will not be reclassified into profit or loss in future periods be displayed together and that components of OCI that will be reclassified into profit or loss in future periods be displayed together. The Board agreed with the staff's recommendation to display items with similar reclassification requirements together.

Lastly, the staff recommended that the Board tentatively decide (a) to remove the option that allows an entity to display components of OCI net of income tax effects and (b) that the income tax effect of an OCI item be displayed with the related OCI item in the statement of comprehensive income. The Board tentatively agreed to remove the option to permit an entity to display components of OCI net of tax. In addition, the Board agreed that income taxes related to items reported in OCI should be allocated between those items that will not be reclassified into profit or loss in future periods and those items that will be reclassified into profit or loss in future periods.

The IASB and FASB agreed to work together to develop exposure drafts to amend their respective requirements under IAS 1 and the FASB Accounting Standards Codification in order to allow the Boards to expose the proposals at the same time. The FASB indicated that it would be beneficial if the timing of the proposal could coincide with the pending release of the exposure draft on Financial Instruments: Recognition and Measurement later this year.

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.