Disclosures for FAS 160 - Non-controlling Interests
By Linda Cavanaugh, CPA - As promised here are the disclosures required to be applied retrospectively for FAS 160.
The presentation and disclosure requirements are to be applied retrospectively for all periods presented.
a.The non-controlling interest is to be reclassified to equity.
b.Consolidated net income will be adjusted to include the net income attributed to the non-controlling interest.
c.Consolidated comprehensive income is to be adjusted to include the comprehensive income attributed to non-controlling interest.
d.The following disclosures will be presented retrospectively:
a. On the face of the consolidated financial statements, the amounts of consolidated net income and consolidated comprehensive income and the related amounts attributable to the parent and non-controlling interest.
b. Either in the notes or on the face of the consolidated income statement:
i. Income from continuing operations
ii. Discontinued operations
iii. Extraordinary items
c. On the face of the consolidated statement of changes in equity or in the notes if a consolidated statement of changes in equity is not presented, a reconciliation at the beginning and ending of the period of the carrying amount of total equity, equity attributable to the parent, and equity attributable to the non-controlling interest. That reconciliation shall separately disclose:
i. Net income
ii. Transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners.
iii. Each component of other comprehensive income.
iv. In the notes a separate schedule that shows the effect of any changes in a parent’s ownership interest in a subsidiary on the equity attributable to the parent.
e.If a subsidiary is deconsolidated, the parent will disclose:
a. The amount of any gain or loss recognized in accordance with paragraph 36 (see Deconsolidation of a Subsidiary from yesterday's blog)
b. The portion of any gain or loss related to the re-measurement of any retained investment in the former subsidiary to its fair value.
c. The caption in the income statement in which the gain or loss is recognized unless separately presented on the face of the income statement.
Remember from the previous blog that a Company will need to disclose pro forma consolidated net income attributable to the parent and pro forma earnings per share if an entity’s consolidated net income would have been significantly different had the previous guidance been applied.
Also, don't forget that Appendix B has several examples to help you out.
The FASB has given us a year to get this implemented, so don't wait until October to get started. The earlier you get started, the better off you will be!
Linda is a CPA living in Southwestern Ohio, working as a research accountant for an investor-owned publicly traded utility company. She specializes in implementing new FASB and SEC requirements and FAS 133 derivative issues. In her role at the utility she has encountered many issues and written many memos, so send in your implementation and derivative issues and Linda will help figure out an answer.