2024 – BC14 Topic 220 requires an entity to report income tax expense or benefit for each component of other comprehensive

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.