Wiley GAAP 2019

5ASC 220 INCOME STATEMENT—REPORTING COMPREHENSIVE INCOME

TECHNICAL ALERT

Maintenance Update 2017-19

On November 15, 2017, with the FASB issuance of Maintenance Update 2017-19:

• The title of ASC 220 changed.
• ASC 225 was superseded and its guidance was relocated to ASC 220.

ASU 2018-02.

In February 2018, The FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU is intended to help entities address certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act.

Under the new guidance, entities have an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. (ASC 220-10-45-12A)

The ASU requires financial statement preparers to disclose:

• A description of the accounting policy for releasing income tax effects from AOCI
• Whether they elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other income tax effects that are reclassified

• (ASC 220-10-50-2)

The amendments in this ASU affect any organization that

• Is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and
• Has items of other comprehensive income for which the related ...