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Statement of Financial Accounting Standards No. 130 - page 23 / 57

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amount for comprehensive income should be displayed, (c) how the total

amount of comprehensive income should be labeled or described, and (d)

whether a per-share amount for comprehensive income should be displayed.

Reporting all items of comprehensive income in a statement of financial

performance

58. The Exposure Draft proposed that changes in the accumulated balances of

income items currently required to be reported directly in a separate

component of equity in a statement of financial position (unrealized gains

and losses on available-for-sale-securities, minimum pension liability

adjustments, and translation gains and losses) should instead be reported

in a statement of financial performance.  In deliberations leading to the

Exposure Draft, the Board noted that those items would be included in a

statement of financial performance under the all-inclusive income concept.

59. Some respondents to the Exposure Draft stated that information about

the components of other comprehensive income already was available

elsewhere in the financial statements and that it was unnecessary for the

Board to require that information to be reported separately and aggregated

into a measure of comprehensive income.  Other respondents agreed that the

components of other comprehensive income should be displayed in a more

transparent manner.  However, a majority of those respondents indicated

that until the Board addresses the conceptual issues discussed in paragraph

54, it was premature for the Board to require that the components be

reported in a statement of financial performance.

60. Most respondents to the Exposure Draft asserted that the requirement to

report comprehensive income and its components in a statement of financial

performance would result in confusion.  Much of that confusion would stem

from reporting two financial performance measures (net income and

comprehensive income) and users' inability to determine which measure was

the appropriate one for investment decisions, credit decisions, or capital

resource allocation.  Many of those respondents argued that the items

identified as other comprehensive income were not performance related and

that it would be not only confusing but also misleading to require that

those items be included in a performance statement.  Finally, some

respondents indicated that comprehensive income would be volatile from

period to period and that that volatility would be related to market forces

beyond the control of management.  In their view, therefore, it would be

inappropriate to highlight that volatility in a statement of financial

performance.  Other respondents said that comprehensive income was more a

measure of entity performance than it was of management performance and

that it was therefore incorrect to argue that it should not be

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