On November 8, 2011, the FASB issued a proposed ASU1 that would indefinitely defer the provision in ASU 2011-05 related to presentation of reclassification adjustments. Released earlier this year, ASU 2011-05 revised the manner in which entities present comprehensive income in their financial statements. Among other provisions, ASU 2011-05 requires entities to present reclassification adjustments out of accumulated other comprehensive income (AOCI) by component in both the statement in which net income is presented and the statement in which other comprehensive income (OCI) is presented (for both interim and annual financial statements). If the proposed ASU becomes final, only this provision under ASU 2011-05 would be deferred.
Comments on the proposed ASU are due by November 23, 2011. The proposed ASU would affect all public and nonpublic entities that report items of OCI in any period presented. The FASB is expected to finalize the proposed ASU by the end of this year.
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