The boards discussed a number of issues raised by constituents who responded to the FASB and IASB exposure drafts. The boards tentatively decided:
- to proceed with the project as originally planned, as opposed to delaying the project until the boards can develop a consistent basis for determining which elements should be presented in Other Comprehensive Income (OCI) and when reclassification to net income is appropriate;
- to require entities to present net income and OCI either in a single continuous statement or in two separate, but consecutive, statements;
- the standards would be effective as of the beginning of a fiscal reporting year that begins after December 15, 2011 for US GAAP and for fiscal reporting years that begin on or after 1 January 2012 for IFRS;
- to affirm the tentative decision to require full-retrospective application for the final standard; and
- to affirm the tentative decision of the FASB to require reclassification adjustments to be presented in both other comprehensive income and net income, and both boards to allow items of other comprehensive income to be presented either net of tax with details in the notes or gross of tax with each item's tax effect displayed parenthetically, and to retain the current calculation of earnings per share based on net income/(profit or loss).
The IASB affirmed its tentative decision to require items of OCI that will be reclassified through profit or loss to be presented separately from items that will not be reclassified through net income.
The FASB affirmed that it will retain the requirement in Topic 220, Comprehensive Income, to present the allocation of items of OCI and net income attributable to non-controlling interests separately from those that are attributable to the controlling financial interest holders of a company. This presentation would be in the Continuous Statement of Comprehensive Income or in both statements, depending on whether the two-statement approach is presented.
The boards gave permission for their staff to begin the balloting process for the final standard.