Changes to Other Comprehensive Income (#152)
/In this podcast episode, we discuss changes to the reporting requirements for other comprehensive income. Key points made are:
The method of presentation of other comprehensive income has been changed because of the increased level of complexity of the information being reported.
There used to be three options for reporting other comprehensive income, which were stating it at the bottom of the income statement, or in a separate statement, or in the statement of shareholders’ equity.
The last option is no longer available; it is considered better to associated other comprehensive income with the income statement, and not hide it in equity.
Evidence shows that presenting other comprehensive income in equity appears to have been more useful to investors.