2.4 ASC 480 Offsetting Entry

As described in Section 9.4, an ASC 480 offsetting entry accompanies any ASC 480 measurement adjustment recorded by a reporting entity. This entry has no impact on consolidated net income of the parent. However, it may affect the amount of net income attributable to noncontrolling interests on the face of the reporting entity’s consolidated income statement and may also affect (directly or indirectly) the amount of net income attributable to the parent’s common shareholders, which is the starting point for the parent’s EPS computation. The extent to which the ASC 480 offsetting entry affects net income attributable to noncontrolling interests or net income attributable to the parent’s common shareholders will depend on various policy elections made by the reporting entity for classifying this entry, as described in Sections 9.4.4 and 9.4.4.2.