The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

6.3 DIFFERENT CONCEPTS OF THE STATEMENT OF CHANGES IN EQUITY

6.3.1 SOCIE in the Context of Reporting Comprehensive Income

Subtopic 220-10 (FASB Statement No. 130) places the statement of changes in equity in the context of reporting comprehensive income. A specific statement of comprehensive income, a combined statement of income and comprehensive income, or a statement of changes in equity are the alternatives allowed. In July 2009, the IASB and the FASB decided to sponsor a separate project on the presentation of comprehensive income. In October 2009, they decided to develop a convergent, although separate, guidance. Effective for fiscal years ending after December 15, 2012 and subsequent annual and interim periods, with early adoption permitted, and for fiscal years (and related interim periods) beginning after December 15, 2011 for public entities, under U.S. GAAP the statement of changes in equity cannot be used to report comprehensive income any longer.64 This is in line with the Staff Draft of the Financial Statement Presentation Project.65

Exhibit 4-3 illustrates these options under U.S. GAAP. Paragraph IV.B above analyzes the income statement, the statement of income and comprehensive income, and the statement of comprehensive income in the context of the statements of income.

U.S GAAP has largely considered the statement of changes in equity as less transparent and less practical. In fact, under Subsection 505-10-50-2 (APB 12) when both financial position and results ...