either in additional classifications of other comprehensive income or in
additional items within current classifications of other comprehensive
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