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Statement of Financial Accounting Standards No. 130 - page 29 / 57





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Displaying per-share amounts for comprehensive income

75. The Exposure Draft proposed that a public enterprise should display a

per-share amount for comprehensive income.  The Board thought that it was

important that comprehensive income receive appropriate attention and was

concerned that it could be perceived as being inferior to measures such as

net income if a per-share amount were not required.  Moreover, the Board

decided that a requirement to display a per-share amount would impose

little or no incremental cost on an enterprise.

76. Most respondents were opposed to the requirement for a per-share amount

for comprehensive income.  They argued that a per-share amount would give

comprehensive income more prominence than net income and would result in

confusion, especially if analysts quote earnings per share for some

enterprises and comprehensive income per share for others.  Many

respondents suggested that until the Board addresses the conceptual issues

involved in reporting comprehensive income (such as when components of

comprehensive income should be recognized in financial statements, how

those components should be measured, and the criteria for inclusion of

those items in net income or in other comprehensive income), it was

premature to require a per-share amount for it.

77. The Board decided to eliminate the requirement for a per-share amount

for comprehensive income in this Statement.  The Board agreed with those

respondents that said the conceptual issues involved in reporting

comprehensive income should be addressed before requiring a per-share

amount.  Furthermore, the Board thought that a requirement for a per-share

amount was inconsistent with its decisions to (a) permit an enterprise to

display comprehensive income and its components in a statement of changes

in equity and (b) not require an enterprise to report  comprehensive income

as a performance measure.

Including Cumulative Accounting Adjustments in Comprehensive Income

78. In addressing what items should be included in comprehensive income,

the Board considered whether the effects of certain accounting adjustments

related to earlier periods, such as the principal example in current

practice¡cumulative effects of changes in accounting principles¡should be

reported as part of comprehensive income.  Revenues, expenses, gains, and

losses of the current period¡including those that bypass the income

statement and go directly to equity¡are all clearly part of comprehensive

income and were not at issue.

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