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Statement of Financial Accounting Standards No. 130 - page 42 / 57

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finalized as proposed, the Board will have to determine whether other

comprehensive income will be attributed to the noncontrolling and

controlling interests on the same basis as items of net income and how the

amounts attributed to those interests will be displayed.

Interim-Period Reporting

124. The Exposure Draft proposed that  a publicly traded enterprise should

be required to report an amount for total comprehensive income in condensed

financial statements of interim periods issued to shareholders.  In its

redeliberations, the Board acknowledged that requiring information about

total comprehensive income without requiring information about its

components might result in a limited understanding of an enterprise's

activities and considered whether it also should require a publicly traded

enterprise to report the components of other comprehensive income at

interim periods.

125. The Board was concerned that adding a requirement for interim-period

financial information about the components of other comprehensive income

might create a disincentive for voluntary reporting of interim financial

information, particularly for those enterprises that disagree with the

annual reporting of comprehensive income.  The Board decided that if there

is a significant difference between total comprehensive income and net

income in interim periods, an enterprise would be inclined to explain that

difference by disclosing the components.  Furthermore, the Board decided

that it should not alter the Exposure Draft's interim-period reporting

requirements by mandating additional information.  Therefore, the Board

decided to retain the requirement for a publicly traded enterprise to

report total comprehensive income in condensed financial statements of

interim periods issued to shareholders.

Effective Date and Transition

126. The Board proposed in the Exposure Draft that this Statement should be

effective for fiscal years beginning after December 15, 1996, for all

enterprises.  That effective date was established under the presumption

that a Statement would be issued in the first quarter of 1997.  Because the

Statement was not issued until late in the second quarter of 1997, the

Board decided to postpone the effective date until fiscal years beginning

after December 15, 1997.  In deciding on that effective date, the Board

agreed that the costs and start-up time associated with implementing this

Statement should be minimal and that, with the exception of

reclassification adjustments, an enterprise will only be displaying

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