6.4 Statement of Comprehensive Income
ASC 220-10
45-1
This Subtopic requires an entity to report comprehensive
income either in a single continuous financial statement or
in two separate but consecutive financial statements.
45-10A
Items of other comprehensive income include the following: .
. .
d. Gains and losses on derivative instruments that
are designated as, and qualify as, cash flow hedges
(see paragraph 815-20-35-1(c))
dd. For derivatives that are designated in
qualifying hedging relationships, the difference
between changes in fair value of the excluded
components and the initial value of the excluded
components recognized in earnings under a systematic
and rational method in accordance with paragraphs
815-20-25-83A and 815-35-35-5A. . . .
ASC 815-20
45-3
An entity shall display as a separate classification within
other comprehensive income the net gain or loss on
derivative instruments designated and qualifying as fair
value or cash flow hedging instruments that are reported in
comprehensive income pursuant to paragraphs 815-20-25-65,
815-20-25-83A, and 815-30-35-3.
ASC 220 requires an entity to report comprehensive income in either a single
continuous financial statement or two separate but consecutive financial statements.
Amounts recorded in OCI related to qualifying hedging relationships should be
reported in the statement of comprehensive income. Such amounts include:
-
Gains on losses on derivatives that are designated in qualifying cash flow hedging relationships.
-
Any difference between (1) the changes in the fair value of excluded components of the hedging instrument and (2) the initial value of the excluded components that is recognized in earnings under a systematic and rational method.
In accordance with ASC 220, amounts recorded in OCI should be reported net of any tax
effect.