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02 June 2010

EFRAG's comments on the IASB's ED Presentation of Items of Other Comprehensive Income - Proposed amendments to IAS 1


EFRAG objects to IASB’s initiative to remove the option of presenting performance in two statements prior to the discussion of fundamental issues related to performance reporting. EFRAG also observes that this proposal would not result in any change/improvements to the current financial reporting.

In May 2010 the IASB issued the Exposure Draft Presentation of Items of Other Comprehensive Income (Proposed amendments to IAS 1) (the ED). The ED proposes to eliminate the option of presenting non-owner changes in equity in two separate statements: an income statement and a statement of other comprehensive income. The ED also proposes to present separately items of other comprehensive income that are reclassified to profit or loss (recyclable) and those that are not reclassified to profit or loss (non-recyclable).
EFRAG strongly objects to the IASB’s initiative to remove the option of presenting performance in two statements prior to the discussion on fundamental issues related to performance reporting (e.g., the notion of performance, or the content of profit and loss and other comprehensive income). EFRAG also observes that this proposal would not result in any change or improvement to the current financial reporting, and therefore it does not support it.
EFRAG is overall supportive of the proposal to present separately items of other comprehensive income that are reclassified to profit or loss (recyclable) and those that are not reclassified to profit or loss (non-recyclable); and to allocate income tax to separate groups of other comprehensive income. However EFRAG believes that it would be more efficient to finalise the disaggregation amendments as part of the Annual Improvements process without a separate re-exposure within the next Annual Improvements cycle.


© EFRAG - European Financial Reporting Advisory Group

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