On the Horizon - November 20, 2012

FASB

All decisions reached at Board meetings are tentative and may be changed at future meetings. Decisions are included in an Exposure Draft only after a formal written ballot. Decisions reflected in Exposure Drafts are often changed in redeliberations by the Board based on information received in comment letters, at public roundtable discussions, and from other sources. Board decisions become final after a formal written ballot to issue a final Accounting Standards Update.

Meeting held November 14

At its November 14 meeting, the FASB discussed its projects on the presentation of items reclassified out of other comprehensive income (OCI), technical corrections to the Codification, and insurance contracts. Highlights of the Board's discussion on these topics, with the exception of insurance contracts, are summarized below.

Presentation of items reclassified out of OCI

Under the guidance in proposed FASB Accounting Standards Update, Presentation of Items Reclassified Out of Accumulated Other Comprehensive Income, entities would be required to disclose the effect of significant reclassifications out of OCI on separate income statement line items for items that must be reclassified in their entirety to net income under U.S. GAAP. For other reclassifications, entities would be required to provide only a cross-reference to other currently required disclosures related to the reclassified item.

The Board tentatively decided that entities would not be required to prepare the proposed disclosures in a tabular format, as originally proposed, provided that the information is disclosed in a single location. Entities would be permitted to present the effect of significant reclassifications either in the notes or parenthetically on the face of the financial statements, as long as the required information is presented in a single location.

Public entities would be required to apply the proposed guidance in both interim and annual periods for reporting periods beginning after December 15, 2012. Nonpublic entities would be required to adopt the proposed guidance for reporting periods beginning after December 15, 2013.

Technical corrections

The Board tentatively decided to issue an Exposure Draft on proposed amendments to the FASB Accounting Standards Codification® (ASC) Master Glossary that would address both unlinked and duplicate terms. The Board does not expect the proposed amendments to result in a change in practice.

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