The AASB has released ED 197, equivalent to the International Accounting Standards Board ED/2010/5.

The ED proposes changes to the presentation of other comprehensive income aimed at improving the consistency of how items of other comprehensive income are presented.
Currently entities are able to present either a single statement of comprehensive income (single statement approach) or an income statement and a separate statement of comprehensive income (two statement approach).

Under ED 197, entities would be required to present a statement of profit or loss and other comprehensive income containing two distinct sections; profit or loss and other comprehensive income.  This proposed presentation is similar to the current single statement approach.

The contents of the profit or loss section of the statement would not differ substantially from the current requirements, however items of other comprehensive income will be different.

The ED proposes a new presentation approach, whereby items of other comprehensive income that will never be recognised / recycled to the profit or loss should be presented separately from those items that will be subsequently reclassified / recycled to the profit or loss.

It is proposed that this amendment will make it easier for financial statement user’s to discern the impacts of items of other comprehensive income that will affect the profit or loss in future periods.

Entities will still have the ability to use primary statement names other than those used in AASB 101.