FASBASU issued on reclassifications out of accumulated other comprehensive income Recently, the FASB issued Accounting Standards Update (ASU) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting reclassifications out of accumulated other comprehensive income (OCI) by requiring entities to present in one place information about significant amounts reclassified and, in some cases, to provide cross-references to related footnote disclosures. The amendments do not change the current requirements for reporting net income or OCI in the financial statements, nor do they require new information to be disclosed. The new guidance requires the following: An entity is required to present, either on the face of the statement where net income is presented or as a separate disclosure in the notes, the effect on the respective line items of net income for items required to be reclassified out of accumulated OCI to net income in their entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference to other required disclosures that provide additional details about those amounts (for example, when a portion of the amount reclassified out of accumulated OCI is initially transferred to a balance sheet account instead of directly to income or expense). Public entities are required to comply with the amendments for all reporting periods presented, including interim periods. Nonpublic entities are required to (1) comply with the amendments for annual reporting periods and (2) report information about the amounts reclassified out of accumulated OCI by component for each reporting period. However, nonpublic entities are not required to report the effects of reclassifications on net income in interim reporting periods. Not-for-profit entities that report under FASB Accounting Standards Codification® (ASC) 958-205, Not-for-Profit Entities: Presentation of Financial Statements, are excluded from the scope of these amendments. The amendments should be applied prospectively and are effective for public entities in reporting periods beginning after December 15, 2012 and for nonpublic entities in reporting periods beginning after December 15, 2013. Early adoption is permitted. Additional information on the ASU can be found in the FASB in Focus, FASB Issues Accounting Standards...
On The Horizon - February 12, 2013
|Author:||Ms Grant Thornton's Audit Practice Group|
|Profession:||Grant Thornton LLP|
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