A rule that proposes to change how companies display comprehensive income in their annual financial statements may become the next controversy for the Financial Accounting Standards Board.
At last week's meeting, FASB announced that this fall it will issue an exposure draft of new guidance on the format for annual financial statements. Guidance on interim statements will be issued separately.
FASB introduced the Project on Reporting Financial Performance in August 2001 to address concerns that investors could be confused or misled by alternative and inconsistent financial performance measures. The increased use of these measures may reflect a rise in the number of business combinations as well as gains and losses associated with restructuring transactions, the board has acknowledged, and not merely companies' desire "to put performance in the best light."
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