Comprehensive Income Standard Update
In February 2013, the FASB issued an updated accounting standard on Comprehensive Income “Update no. 2013-02.” This update does not change the current requirements for reporting comprehensive income in financial statements. The update, however, requires companies to provide information about the amounts reclassified out of accumulated other comprehensive income by component. A company is required to present, either on the face of the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items or net income in its entirely in the same reporting period.
This accounting update will be effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted.