Current NASDAQ Corporation Methods of Reporting Comprehensive Income

Ganesh M. Pandit, Allen Rubenfield and Jeffrey J. Phillips
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Ganesh M. Pandit: Adelphi University
Allen Rubenfield: Clark Atlanta University
Jeffrey J. Phillips: Clark Atlanta University

American Journal of Business, 2006, vol. 21, issue 1, pages 13-19

Abstract: Statement of Financial Accounting Standard No. 130 (SFAS 130) was released in 1997 which required publicly traded companies to separately report comprehensive income in the Þnancial statements. SFAS 130 prescribed three alternative formats for the presentation without mandating any one speciÞc format. SFAS 130 also required certain details of comprehensive income to be displayed prominently in the Þnancial statements. The current study examined the presentation of comprehensive income by a sample of companies traded on the NASDAQ market to determine the predominant method of presentation among these companies, Þve years after SFAS 130 became effective. Results of the examination of one hundred annual reports showed that a majority of the sampled companies used the third approach, which was to present comprehensive income as part of the Statement of StockholdersÕ Equity, as against the Þrst two approaches that favored presentation of comprehensive income on the face of the Income Statement or in a separate statement. Further, the paper also discusses some ancillary Þndings pertaining to the presentation of the details of comprehensive income.

Keywords: Accounting; FASB; SFAS 130; comprehensive income (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)
Date: 2006

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