The Financial Accounting Standards Board

1191 WordsApr 18, 20175 Pages
The purpose of the Financial Accounting Standards Board (FASB) is to create and improve the standards of financial accounting and reporting for nongovernmental entities. It is a standard for not for profit financial reporting which provides useful information to investors and other users of financial reports. The Accounting Standards Update 2011-5 discusses the reporting and presentation of comprehensive income and its components in a full set of general purpose financial statements. The goal of reporting comprehensive income is to report a measure of all changes in equity of an entity except those resulting from owner investments and distributions to owners. If used with related disclosures and other information in the financial…show more content…
This will allow for a more complete and detailed income statement. If the entity choses to provide a single continuous statement, they are required to present the components of net income and total net income, the components of other comprehensive income and a total for other comprehensive income, along with the total of comprehensive income in that statement. If they chose the two-statement approach, an entity is required to present components of net income and total net income in the statement of net income. The statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. Despite which type of comprehensive income statement the entity decides to present, they are required to present the reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented on the face of the financial statement. These changes apply to both annual and interim financial statements. These improvements will help financial statement users
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