The board votes to hold off on a proposal to change how companies display comprehensive income in their annual financial statements.
In a 5-2 vote, the Financial Accounting Standards Board has agreed to scratch a planned proposal on reporting financial performance. The most controversial element of the proposal would have been an amendment to Statement No. 130, Reporting Comprehensive Income, that would require a single statement of earnings and comprehensive income and eliminate the currently permitted two-statement approach.
FASB and the International Accounting Standards Board — which are collaborating on a unified standard for reporting financial performance but which deliberate independently — had initially decided to issue an exposure draft that would include all decisions reached by both boards in the project's so-called Segment A. At its November 16 board meeting, however, IASB decided it would issue an exposure draft that would encourage a single statement but permit a two-statement approach.
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