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Statement of Financial Accounting Standards No. 130 - page 33 / 57





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within other comprehensive income.  For example, the reclassification

adjustments should be labeled as relating to available-for-sale securities

or foreign currency items.

93. The notice for recipients of the Exposure Draft asked if it would be

practicable to determine reclassification amounts for (a) gains and losses

on available-for-sale securities, (b) foreign currency items, and (c)

minimum pension liability adjustments.  A majority of the respondents that

commented on reclassification adjustments generally agreed that it would be

practicable to determine reclassification adjustments for available-for-

sale securities and foreign currency items but that it would not be

practicable to determine a reclassification adjustment for minimum pension

liability adjustments.

94. In response to other comments from constituents about reclassification

adjustments, the Board decided to (a) include an example illustrating the

calculation of reclassification adjustments for available-for-sale

securities, (b) clarify that the requirement for a reclassification amount

for foreign currency translation adjustments is limited to translation

gains and losses realized upon sale or complete or substantially complete

liquidation of an investment in a foreign entity, (c) encourage, but not

require, reclassification adjustments for earlier period financial

statements presented for comparison to the first period in which this

Statement is adopted, and (d) permit an enterprise to display

reclassification adjustments on the face of the financial statement where

comprehensive income is reported or in a note to the financial statements.

Therefore, for all classifications of other comprehensive income other than

minimum pension liability adjustments, an enterprise may either (1) use a

gross display on the face of the financial statement or (2) use a net

display on the face of the financial statement and disclose the gross

changes in the notes to the financial statements.

95. The Board also decided that an enterprise should display the

accumulated balance of other comprehensive income in the equity section of

the statement of financial position separately from retained earnings and

additional paid-in capital and use a descriptive title such as accumulated

other comprehensive income for that separate component of equity.  So that

users of financial statements are able to trace the component of other

comprehensive income displayed in a financial statement to its

corresponding balance, the Board decided that an enterprise should disclose

accumulated balances for each classification in that separate component of

equity on the face of a statement of financial position, in a statement of

changes in equity, or in notes to the financial statements.  Each display

classification should correspond to display classifications used elsewhere

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