SUMMARY OF BOARD DECISIONS
Summary of Board decisions are provided for the information and
convenience of constituents who want to follow the Board’s deliberations. All of
the conclusions reported are tentative and may be changed at future Board
meetings. Decisions are included in an Exposure Draft for formal comment only
after a formal written ballot. Decisions in an Exposure Draft may be (and often
are) changed in redeliberations based on information provided to the Board in
comment letters, at public roundtable discussions, and through other
communication channels. Decisions become final only after a formal written
ballot to issue an Accounting Standards Update.
October 21, 2011 FASB Board Meeting
Presentation of
comprehensive income: reclassifications of items of other comprehensive
income. The Board discussed the operational concerns of stakeholders about
the presentation requirements for reclassification adjustments in Accounting
Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation
of Comprehensive Income.
The Board decided that the specific
requirement to present items that are reclassified from other comprehensive
income to net income alongside their respective components of net income and
other comprehensive income will be deferred. Therefore, those requirements will
not be effective for public entities for fiscal years and interim periods within
those years beginning after December 15, 2011. Similarly, those requirements
also will not be effective for nonpublic entities for fiscal years ending after
December 15, 2012. The Board directed the staff to draft a proposed Update for
vote by written ballot that would supersede the applicable paragraphs of pending
content in Topic 220, effectively deferring those requirements until the Board
can consider stakeholders’ concerns about how they are applied. Key provisions
for those requirements pertain primarily to paragraphs 220-10-45-17, 220-10-55-7
through 55-9, and 220-10-55-18. The Board decided that the comment period on the
Exposure Draft will be no shorter than 15 days.
While the Board is
considering the operational concerns about presentation requirements for
reclassification adjustments, entities will continue to report reclassifications
out of accumulated other comprehensive income according to the applicable
provisions in effect before Update 2011-05.
The Board’s decisions do not
affect the requirement to report comprehensive income either in a single
continuous financial statement or in two separate but consecutive financial
statements. Public entities will be required to apply that requirement in fiscal
years and interim periods within those years beginning after December 15, 2011.
Nonpublic entities will be required to begin applying that requirement in fiscal
years ending after December 15, 2012, and interim and annual periods
thereafter.