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Statement of Financial Accounting Standards No. 130 - page 26 / 57

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(b) in a statement of changes in equity.  The Board decided that if an

enterprise opted to display comprehensive income in a statement of changes

in equity, that statement must be presented as part of a full set of

financial statements and not in the notes to the financial statements.

66. The Board also decided that until it addresses the conceptual issues

surrounding the reporting of comprehensive income, it should not require

presentation of comprehensive income  as a measure of financial

performance.  Consequently, the Board agreed to eliminate references to

comprehensive income as a performance measure in the standards section of

the final Statement.  Therefore, this Statement requires that all items

that are recognized under accounting standards as components of

comprehensive income be reported in a financial statement that is displayed

with the same prominence as other financial statements that constitute a

full set of financial statements that report financial position, results of

operations, and cash flows.

67. The Board decided to encourage an enterprise to report comprehensive

income and the components of other comprehensive income in an income

statement below the total for net income or in a separate statement of

comprehensive income that begins with net income as originally proposed by

the Exposure Draft.  The Board believes that displaying comprehensive

income in an income-statement-type format is more consistent with the

Concepts Statements and therefore is conceptually superior to  displaying

it in a statement of changes in equity.  That type of display also is

consistent with the all-inclusive income concept.  Furthermore, display of

comprehensive income in an income-statement-type format provides the most

transparency for its components.  Also, it may be more practical for an

enterprise that has several items of other comprehensive income to display

them outside a statement of changes in equity.  Finally, display in an

income-statement-type format is consistent with the Board's desire to

implement a broader-scope project on comprehensive income that ultimately

could move toward reporting comprehensive income and its components in a

statement of financial performance.

Displaying a total for comprehensive income

68. The Board decided to retain the requirement in the Exposure Draft to

display a total amount for comprehensive income in the financial statement

in which its components are displayed regardless of whether an enterprise

chooses to display those components in an income-statement-type format or

in a statement of changes in equity.  The Board agreed that that total will

demonstrate articulation between an enterprise's financial position at the

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