STANDARDS OF FINANCIAL ACCOUNTING AND REPORTING
6. This Statement applies to all enterprises that provide a full set of
financial statements that report financial position, results of operations,
and cash flows.\3/ This Statement does not apply to an enterprise that has
no items of other comprehensive income in any period presented or to a not-
for-profit organization that is required to follow the provisions of FASB
Statement No. 117, Financial Statements of Not-for-Profit Organizations.
\3/ Investment companies, defined benefit pension plans, and other employee
benefit plans that are exempt from the requirement to provide a
statement of cash flows by FASB Statement No. 102, Statement of Cash
Flows¡Exemption of Certain Enterprises and Classification of Cash Flows
from Certain Securities Acquired for Resale, are not exempt from the
requirements of this Statement if they otherwise apply.
7. This Statement discusses how to report and display comprehensive
income and its components. However, it does not specify when to recognize
or how to measure the items that make up comprehensive income. Existing
and future accounting standards will provide guidance on items that are to
be included in comprehensive income and its components.
Definition of Comprehensive Income
8. Comprehensive income is defined in Concepts Statement 6 as "the change
in equity [net assets] of a business enterprise during a period from
transactions and other events and circumstances from nonowner sources. It
includes all changes in equity during a period except those resulting from
investments by owners and distributions to owners" (paragraph 70).
9. In Concepts Statement 5, the Board stated that "a full set of
financial statements for a period should show: Financial position at the