As discussed in ASC 323-10-35-18, a reporting entity is required to record its proportionate share of its equity method investees' comprehensive income. This requirement is consistent with the guidance in ASC 323-10-35-15, which indicates that an investee's transactions that are of a capital nature and affect the investor's share of the investee's stockholders' equity should be accounted for as if the investee were a consolidated subsidiary.
The format used by an investee to report comprehensive income, including other comprehensive income (OCI), should not impact how the investor displays its proportionate share of OCI of its investee. Accordingly, an investor is permitted to combine its proportionate share of OCI from an equity method investment with its own OCI items and report those aggregated amounts (by each category).
Alternatively, as depicted in Figure FSP 10-3, an investor would be permitted to separately report OCI items related to an equity method investee.
Figure FSP 10-3
Separate presentation in the statement of comprehensive income of equity method investee OCI items
FSP Corp
Statement of Comprehensive Income
For the year ended December 31, 20X1
Net income
Other comprehensive income, net of deferred income taxes:
Changes in foreign currency translation adjustments
Changes in defined benefit plans:
Actuarial losses and prior service cost/credit before reclassification to net earnings
Amounts reclassified to net earnings
Ownership share of equity method investment:
Other comprehensive income, before reclassifications to net earnings
Amounts reclassified to net earnings
Other comprehensive income, net of deferred income taxes
Comprehensive income
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to FSP Corp
View table
Note X—Changes in accumulated other comprehensive income by component
The following table presents a rollforward of accumulated other comprehensive income, net of tax:

Currency translation adjustments

Benefit plans

Equity method investment

Accumulated other comprehensive loss
Beginning balance, January 1, 20X1
$ 20
$ (206)
$ 33
$ (153)
Period change
Ending balance, December 31, 20X1
$ 30
$ (242)
$ 52
$ (160)
View table

10.5.1 Equity method—foreign entity

Reporting entities should also apply the guidance applicable to OCI and cumulative translation adjustments accounted for in accordance with ASC 830 for equity method investments that are (or are part of) a foreign entity, and for domestic equity method investments that have an investment in a foreign entity. When the equity method is used, the reporting entity’s financial statements should include a proportionate share of any investee’s translation adjustments (e.g., when the investee has a subsidiary that is a foreign entity) in OCI, as well as its proportionate share of the direct effects of translating an equity method investee that reports in a foreign currency (e.g., the investee is a foreign entity). See FX 5 for further guidance on foreign currency translation adjustments.
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