FASB proposes new format for reclassification disclosures

Aug 23, 2012
A new accounting standards update from FASB seeks to improve the presentation for reclassifications out of accumulated other comprehensive income. The goal is to balance the benefits to users of financial statements without imposing significant costs to preparers of financial statements.

The proposed amendments would apply to all public and private organizations, but not to not-for-profit organizations.

The proposed ASU would require a tabular disclosure about reclassifications out of accumulated other comprehensive income, thereby presenting in one place information about the amounts reclassified and a road map to related financial disclosures. Currently, this information is presented throughout the financial statements under U.S. GAAP. As a result, there should not be significant costs incurred by preparers of financial statements.

Stakeholders are asked to provide input by Oct. 15.