The US Financial Accounting Standards Board
(FASB) has issued a proposal to improve the presentation of
reclassifications out of accumulated other comprehensive

The proposed Accounting Standards Update (ASU)
is intended to be structured in a way that will not add cost to the
preparation of financial statements. It would be applicable to all
public and private organisations, but not to not-for-profit

The FASB’s proposals would require a tabular
disclosure about reclassifications out of accumulated other
comprehensive income; reclassifications of net gains and losses
that are initially excluded from net income for an accounting
period before later being reintroduced.

This new disclosure would present all
reclassified amounts in one place rather than having them spread
throughout financial statements. As this information is already
presented anyway under US GAAP, the FASB thinks there should be no
significant costs incurred.

In December 2011, the FASB issued ASU No.
2011-12, which deferred changes required by ASU No. 2011-05 related
to reclassifications, to allow the FASB to perform a cost/benefit
analysis of the requirements. The latest proposed update is an
attempt to provide alternative presentation requirements for
reclassifications out of accumulated other comprehensive

“Stakeholders raised concerns that certain
requirements about the reclassification of items out of accumulated
other comprehensive income would be costly for preparers and add
unnecessary complexity to financial statements,” FASB chairman
Leslie Seidman said.

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“Based on this new feedback, the Board is
proposing a revised approach that will present information about
other comprehensive information in a useful way that is more

Deadline for comment on the proposals is 15