The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

4.2 DIFFERENT FORMS OF STATEMENTS OF INCOME

4.2.1 The Income Statement versus the Statement of Comprehensive Income

The 2007 Revision of IAS 1, in an effort to converge with U.S. GAAP, introduced the statement of comprehensive income and eliminated the statement of recognized income and expense.1 Under IFRSs, an entity may use the statement of comprehensive income (i.e., a single statement of comprehensive income) or an income statement and a sort of combined statement of income and comprehensive income (i.e., the statement of comprehensive income). The 2011 amendments to IAS 1 use the term of the statement of profit or loss and other comprehensive income, in one or two statements.2

Comment: Under IAS 1 (1997), the income statement was a stand-alone statement. After the 2007 revision, it is a disaggregation of the statement of comprehensive income.

U.S. GAAP permits an entity to use a single income statement (in such a case it will display comprehensive income as part of the statement of changes in equity). The entity may also use an income statement and a statement of comprehensive income or a combined statement of income and comprehensive income.3 However, effective for fiscal years ending after December 15, 2012 and subsequent annual and interim periods, with early adoption permitted, and for fiscal years (and related interim periods) beginning after December 15, 2011 for public entities, under U.S. GAAP the statement of changes in equity cannot be used to report comprehensive ...