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Statement of Financial Accounting Standards No. 130 - page 12 / 57

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   This Statement was adopted by the affirmative votes of five members of

the Financial Accounting Standards Board.  Messrs. Cope and Foster

dissented.

   Messrs. Cope and Foster dissent from this Statement because it permits

an enterprise to display the items of other comprehensive income identified

in this Statement with less prominence and to characterize them differently

from other items of comprehensive income that are currently included in net

income.  The Board's conceptual framework does not define earnings or net

income, nor does it provide criteria for distinguishing the characteristics

of  items that should be included in comprehensive income but not in net

income.  The qualitative characteristics of the items currently classified

as items of other comprehensive income have not been conceptually

distinguished from those items included in net income.  Messrs. Cope and

Foster believe that items of other comprehensive income can be as

significant to measurement of an enterprise's economic and financial

performance as those items of comprehensive income that are currently

included in measuring net income, and that the comparability and the

neutrality of reported information are adversely affected if some items of

comprehensive income are omitted from reports on economic and financial

performance.  Therefore, they have concluded that this Statement should

have required that items of other comprehensive income be reported in a

statement of financial performance, preferably in a single statement in

which net income is reported as a component of comprehensive income.

   Messrs. Cope and Foster believe that a primary objective in undertaking

a project on reporting comprehensive income was to significantly enhance

the visibility of items of other comprehensive income.  They do not believe

that this Statement will achieve that objective.  Messrs. Cope and Foster

think that it is likely that most enterprises will meet the requirements of

this Statement by providing the required information in a statement of

changes in equity, and that displaying items of other comprehensive income

solely in that statement as opposed to reporting them in a statement of

financial performance will do little to enhance their visibility and will

diminish their perceived importance.  Thus, it is their view that this

Statement will inappropriately relegate certain items of comprehensive

income to a lesser standing, having less visibility than other items of

comprehensive income that are included in net income, and will do so for

the foreseeable future.

   Another objective of the project on reporting comprehensive income was

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