The Financial Accounting Standards Board said Wednesday that it would consider postponing the effective date of certain provisions of a recently issued standard on the presentation of comprehensive income.
FASB admitted that it had heard complaints about the timing and amount of detail required in the standards update, which it released in June.
Accounting Standards Update No. 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” would require a separate presentation on the face of the financial statements of items reclassified from other comprehensive income to net income. FASB issued the update to align its own standards with those of the International Accounting Standards Board during the last few weeks of former IASB chairman Sir David Tweedie's tenure (see FASB and IASB Align Presentation of Other Comprehensive Income).
Recently, according to FASB, people have raised concerns to the board about whether they have enough time to implement that aspect of the update and the level of detail that might result from separately presenting those items reclassified from other comprehensive income to net income.
FASB chair Leslie Seidman has decided to add another project to its agenda specifically to consider deferring those provisions of the update. At a future meeting, the board will discuss whether to delay the effective date of the provisions related to the presentation of reclassification adjustments until it has had time to evaluate the stakeholders’ concerns.
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