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Statement of Financial Accounting Standards No. 130 - page 34 / 57

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in the same set of financial statements for components of other

comprehensive income.

Display of Comprehensive Income in One or Two Statements of Financial

Performance

96. The Exposure Draft proposed that an enterprise should be required to

display the components of comprehensive income in either one or two

statements of financial performance.  In addressing whether comprehensive

income should be displayed in one or two statements of financial

performance, the Board noted that accounting standards in the United

Kingdom require that the equivalent to comprehensive income be displayed in

two statements.  The Board concluded that a two-statement approach might be

preferred by many constituents.  However, some enterprises with few items

of other comprehensive income might prefer to display comprehensive income

by means of a single statement and they should not be prohibited from doing

so.

97. Respondents to the Exposure Draft provided mixed views about whether

the Board should permit a choice of displaying comprehensive income in one

statement or two statements of financial performance.  Of the respondents

that agreed with the Board's decision to permit a choice of one or two

statements, some stated that the preparer should be allowed to decide which

format best depicts the enterprise's other comprehensive income items.

Most of the respondents that disagreed with the Board's decision to permit

a choice of one or two statements indicated that the Board should mandate

the two-statement approach because that type of display could alleviate

confusion by clearly distinguishing between net income and comprehensive

income.  Based on comments from constituents, the Board found no compelling

reason to eliminate either the one-statement approach or the two-statement

approach for those enterprises that choose to display comprehensive income

in an income-statement-type format.

98. The Board also decided that an enterprise should use a "reconciled"

format for reporting comprehensive income whereby the components of other

comprehensive income are the reconciling amounts between net income and

comprehensive income.  That format makes the relationship between net

income and comprehensive income more apparent and might better facilitate

the transition to reporting comprehensive income.

99. Under a reconciled format, an enterprise that chooses to display

comprehensive income in an income-statement-type format by using two

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