BC14. Topic 220 requires an entity to report income tax expense or benefit for each component of other comprehensive income. The Exposure Drafts proposed to retain the requirement under current U.S. GAAP and IFRS to provide information on the income tax effects of each component of other comprehensive income either on the face of the statement or in the notes.
BC15. Respondents generally agreed with the Boards’ proposal to retain the option to present items of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items, as long as the tax effect for each component is disclosed in the notes to the financial statements or is presented on the statement in which other comprehensive income is presented. However, some respondents disagreed with the requirement to separately allocate income tax expense to each
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component of other comprehensive income because of the cost of providing that information. The Boards decided to continue requiring income tax allocations to each component of other comprehensive income and to retain the existing alternatives for presenting those allocations.
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EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
BC14. Topic 220 requires an entity to report income tax expense or b.docx
1. BC14. Topic 220 requires an entity to report income tax
expense or benefit for each component of other comprehensive
income. The Exposure Drafts proposed to retain the requirement
under current U.S. GAAP and IFRS to provide information on
the income tax effects of each component of other
comprehensive income either on the face of the statement or in
the notes.
BC15. Respondents generally agreed with the Boards’ proposal
to retain the option to present items of other comprehensive
income either net of related tax effects or before related tax
effects, with one amount shown for the aggregate income tax
expense or benefit related to the total of other comprehensive
income items, as long as the tax effect for each component is
disclosed in the notes to the financial statements or is presented
on the statement in which other comprehensive income is
presented. However, some respondents disagreed with the
requirement to separately allocate income tax expense to each
46
component of other comprehensive income because of the cost
of providing that information. The Boards decided to continue
requiring income tax allocations to each component of other
comprehensive income and to retain the existing alternatives for
presenting those allocations.
