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Statement of Financial Accounting Standards No. 130 - page 25 / 57





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equity.  APB Opinion No. 12, Omnibus Opinion¡1967, requires that an

enterprise report changes in stockholders' equity accounts other than

retained earnings whenever both financial position and results of

operations are presented.  However, paragraph 10 of Opinion 12 states that

"disclosure of such changes may take the form of separate statements or may

be made in the basic financial statements or notes thereto."  The Board

agreed that it was important for information about other comprehensive

income and total comprehensive income to be displayed in a financial

statement presented as prominently as other financial statements that

constitute a full set of financial statements.  Because Opinion 12 permits

an enterprise to report changes in equity in a note to the financial

statements, the Board agreed that if it required an enterprise to display

comprehensive income and its components in a statement of changes in equity

that it would first have to implement a requirement for all enterprises to

provide such a statement. The Board also acknowledged that the Securities

and Exchange Commission requires that public enterprises provide

information about changes in equity but, similar to Opinion 12, those

requirements permit an enterprise to display that  information in a note to

the financial statements.\10/  The Board noted that some enterprises might

not have items of other comprehensive income and decided that it would be

burdensome to require that those enterprises provide a statement of changes

in equity when the impetus for that requirement did not apply to them.  The

Board also noted that some enterprises might have only one item of other

comprehensive income and that those enterprises might prefer to report that

item below net income in a single statement instead of creating a separate

statement of changes in equity to report that amount.


\10/ SEC Regulation S-X, Section 210.3-04, "Changes in Other Stockholders'

    Equity," states that "an analysis of the changes in each caption of

    other stockholders' equity presented in the balance sheets shall be

    given in a note or separate statement.  This analysis shall be

    presented in the form of a reconciliation of the beginning balance to

    the ending balance for each period for which an income statement is

    required to be filed with all significant reconciling items described

    by appropriate captions."


65. The Board decided that it could achieve the desired transparency for

the components of other comprehensive income and at the same time be

responsive to the concerns of its constituents by permitting a choice of

displaying comprehensive income and its components (a) in one or two

statements of financial performance (as proposed by the Exposure Draft) or

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