35. This appendix summarizes considerations that were deemed significant
by Board members in reaching the conclusions in this Statement. It
includes reasons for accepting certain approaches and rejecting others.
Individual Board members gave greater weight to some factors than to
36. The term comprehensive income was first introduced in Concepts
Statement 3, which was issued in December 1980. However, the term
comprehensive income was used to communicate the same notion as earnings in
FASB Concepts Statement No. 1, Objectives of Financial Reporting by
Business Enterprises, which was issued in November 1978.\7/ The Board
decided to use comprehensive income rather than earnings in Concepts
Statement 3 because it wanted to reserve earnings for possible use to
designate a different concept that was narrower than comprehensive income.
\7/ Comprehensive income also is the concept that was referred to as
earnings in other conceptual framework documents: Tentative
Conclusions on Objectives of Financial Statements of Business
Enterprises (December 1976), FASB Discussion Memorandum, Conceptual
Framework for Financial Accounting and Reporting: Elements of
Financial Statements and Their Measurement (December 1976), FASB
Exposure Draft, Objectives of Financial Reporting and Elements of
Financial Statements of Business Enterprises (December 1977), and FASB
Discussion Memorandum, Reporting Earnings (July 1979).
37. In Concepts Statement 5, the Board concluded that comprehensive income
and its components should be reported as part of a full set of financial
statements for a period. The Board also described earnings as part of
comprehensive income in that Concepts Statement, indicating that earnings
was narrower than comprehensive income, and provided illustrations of
possible differences between earnings and comprehensive income. Earnings
was described as being similar to net income in current practice, except
for cumulative effects of changes in accounting principles, which are
included in present net income but are excluded from earnings.
38. In December 1985, Concepts Statement 6 superseded Concepts Statement 3,