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Statement of Financial Accounting Standards No. 130 - page 22 / 57





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54. Although the scope of the project was limited to issues of reporting

and display, the Board recognizes that other more conceptual issues are

involved in reporting comprehensive income.  Such issues include questions

about when components of comprehensive income should be recognized in

financial statements and how those components should be measured.  In

addition, there are conceptual questions about the characteristics of items

that generally accepted accounting principles require to be included in net

income versus the characteristics of items that this Statement identifies

as items that are to be included in comprehensive income outside net

income.  Furthermore, there are several items that generally accepted

accounting principles require to be recognized as direct adjustments to

paid-in capital or other equity accounts that this Statement does not

identify as being part of comprehensive income.  (Refer to paragraphs 108-

119.)  The Board expects to consider those types of issues in one or more

broader-scope projects related to reporting comprehensive income.

55. The Board considered whether not-for-profit organizations should be

permitted to follow the provisions of this Statement and decided that those

organizations should continue to follow the requirements of Statement 117.

Because Statement 117 requires that those organizations report the change

in net assets for a period in a statement of activities, those

organizations already are displaying the equivalent of comprehensive


Issues Considered

56. The issues considered in this project were organized under the

following general questions:  (a) whether comprehensive income should be

reported, (b) whether cumulative accounting adjustments should be included

in comprehensive income, (c) how components of comprehensive income should

be classified for display, (d) whether comprehensive income and its

components should be displayed in one or two statements of financial

performance, and (e) whether components of other comprehensive income

should be displayed before or after their related tax effects.

Reporting of Comprehensive Income

57. The Board considered the following issues about reporting comprehensive

income:  (a) whether all items that are or will be recognized under current

and future accounting standards as items of comprehensive income should be

reported in a statement of financial performance, (b) whether a total

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