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Statement of Financial Accounting Standards No. 130 - page 32 / 57

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either in additional classifications of other comprehensive income or in

additional items within current classifications of other comprehensive

income.

89. The Board also considered the need to display reclassification

adjustments.  Those adjustments are necessary to avoid double counting

certain items in comprehensive income.  For example, gains realized during

the current period and included in net income for that period may have been

included in other comprehensive income as unrealized holding gains in the

period in which they arose.  If they were, they would have been included in

comprehensive income in the period in which they were displayed in other

comprehensive income and must be offset in the period in which they are

displayed in net income.

90. The current-period change in the balance of particular items of other

comprehensive income could be displayed gross or net.  If reported gross,

reclassification adjustments are reported separately from other changes in

the balance; thus, the total change is displayed as two amounts.  If

reported net, reclassification adjustments are combined with other changes

in the balance; thus, the total change is displayed as a single amount.

Both approaches are illustrated in Appendix B, Format A.

91. The Board decided that an enterprise should use a gross display for

classifications of other comprehensive income where it is practicable to

ascertain the amount of reclassification adjustments for particular items

within that classification.  The Board concluded that it should be

practicable for an enterprise to calculate reclassification adjustments for

securities and other financial instruments and for foreign currency

translation items but that it is not practicable for an enterprise to

calculate reclassification adjustments for minimum pension liability

adjustments.  Therefore, an enterprise is required to use a gross display

for classifications of other comprehensive income resulting from gains and

losses on securities and other financial instruments and for foreign

currency items and to use a net display for the classification of other

comprehensive income resulting from minimum pension liability adjustments.

92. The Board decided that under a gross display, an enterprise could

display reclassification adjustments either as a single section within

other comprehensive income or as part of the classification of other

comprehensive income to which those adjustments relate (such as foreign

currency items or gains and losses on available-for-sale securities).

However, if all reclassification adjustments are displayed in a single

section within other comprehensive income, they should be descriptively

labeled so that they can be traced to their respective classification

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