Pershing Yoakley & Associates, P.C., is pleased to present the July 2011 Audit & Accounting Update. This publication is designed to provide direct access to current audit and accounting information that is relevant to you.
FASB Activities
Recently Completed Projects
The Financial Accounting Standards Board (FASB) released one Accounting Standards Update (ASU) in June. A summary of this ASU is provided below.
ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income
This ASU was drafted in an effort to increase the prominence of items reported as other comprehensive income in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To that end, FASB has elected to no longer allow components of other comprehensive income to be presented as a part of the statement of changes in stockholders equity. All non-owner changes in stockholders equity are now required to be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. Under the two statement approach, the first statement presented should include total net income and its respective components while the second statement presents total other comprehensive income, its respective components and a total for comprehensive income. Regardless of the presentation method selected, entities are required to include on the face of the statement(s), reclassification adjustments between the components of net income and other comprehensive income. The FASB believes the amendments in this ASU will help financial statement users better understand the causes of an entity s change in financial position and results of operations. This ASU applies only to those entities currently required to report comprehensive income.
The amendments in this ASU are to be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. Early adoption is permitted and the amendments do not require any transition disclosures.
To view the ASU in its entirety, please click here.
For more information, please contact the experts listed below at (800) 270-9629.
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