Income Statement, ASC 225

SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements
an Amendment of ARB No. 51”

ARB 51, August 1959
“Consolidated Financial Statements”

1. SFAS 160 amended ARB No. 51

2. On the face of the consolidated financial statements
–> report (A1) and (A2) separately
(A1) Consolidated net income attributable to the parent
(A2) Consolidated net income attributable to the noncontrolling interest

3. On the face of the consolidated financial statements
–> report (B1) and (B2) separately
(B1) Consolidated comprehensive income attributable to the parent
(B2) Consolidated comprehensive income attributable to the noncontrolling interest

4. SFAS 160, Transition
The requirements for presentation and disclosure are
–> applied “retrospectively”
–> for all periods presented

4a. Consolidated net income is adjusted
–> to include net income attributed to the noncontrolling interest

4b. Consolidated comprehensive income is adjusted
–> to include comprehensive income attributed to the noncontrolling interest

4c. Noncontrolling interest is reclassified
–> to equity

Line items of income statement

1. Net sales
2. Cost of sales
3. Selling, general and administrative (SG&A) expenses
4. Provisions for doubtful accounts
5. Non-operating income
6. Interest income and interest expense
7. Non-operating expenses
8. Income before income taxes
9. Income taxes
10. Earnings on equity investments
11. Income from continuing operations
12. Discontinued operations
13. Net income
14. Net income attributable to the noncontrolling interest
15. Net income attributable to the controlling interest
16. Earnings per share (Basic EPS and Diluted EPS)