Dual Reporting for Equity and Other Comprehensive Income under IFRSs and U.S. GAAP

Francesco Bellandi holds a Degree in Economics (summa cum laude), LUISS University; M.B.A., SDA Bocconi School of Business, Bocconi University; Diploma in International Financial Reporting from the ACCA (The Association Of Chartered Certified Accountants, UK); and the Diploma in Private Equity from the A.I.F.I. (Italy’s private equity association).Francesco Bellandi, U.S. CPA (Certified Public Accountant) and Dottore Commercialista (Italian Chartered Accountant), is a practitioner in U.S. GAAP/IFRSs dual reporting. He is a member of the AICPA, the NYSSCPA (New York State Society of Certified Public Accountants), and the NYSSCPA’s International Accounting & Auditing Committee.He has served as a Board Director and Chief Financial Officer in Cobalt Waterline Group (2007–2008); Director Finance & Administration in Alitalia Maintenance Systems (Alitalia – Lufthansa Technik) (2003–2005); Chief Financial Officer in Alitalia North America & Mexico, NewYork (2001–2003); Director Business Planning&Finance Performance SEMEA Southern Europe, Middle East, and Africa in Société Internationale de Télécommunications A´eronautiques (1999–2001); Manager Finance & Administration/Shared Services, Reengineering & Restructuring in Ernst & Young (1997–1998); Financial Controller and Logistics Manager in Ericsson (1993–1997); Financial Analyst in IRI (Istituto per la Ricostruzione Industriale) (1988–1992).Francesco Bellandi also holds executive seminars for CFOs on U.S. GAAP/IFRSs dual reporting. He can be reached at francesco_bellandi@yahoo.com or dualgaap.com, the website dedicated to U.S. GAAP/IFRSs Dual Reporting.

• Preface xixAbout the Author xxi1 Introduction and Scope of Book 11.1 Nature of Accounting Literature and Pertinent Pronouncements 11.2 Perspectives and Major Implications of the Concept of Equity 11.3 The Concept of Other Comprehensive Income 31.4 The Financial Statement Presentation Project 31.5 Main Interrelationships with Other Projects 81.6 Significance of Equity 91.7 Scope of Book 102 Views on Equity and Implications 172.1 Terminology and Definitions of Terms 172.2 Basic Characteristics of Equity 392.3 Major Implications for Companies 473 Reserves 633.1 Terminology and Definitions of Terms 633.2 Reconciliation 653.3 Types of Reserves 673.4 Tracking of Equity 693.5 Function of Reserves 693.6 IFRS Implementation in Some Jurisdictions 783.7 Conservatism, True-and-Fair View, and Investors' Protection 883.8 Perspectives and Alternative Models 904 Equity Section of the Statement of Financial Position 934.1 Terminology and Definition of Terms 934.2 Single- Versus Multi-Step Equity Section 984.3 Noncontrolling Interest 994.4 Other Classifications in Temporary Equity 1104.5 Layout of the Equity Section of the Statement of Financial Position 1184.6 Capital Disclosures 1244.7 Equity of Partnerships and Similar Entities 1274.8 Net Assets of Entities with No Contributed Equity or with Owners' Interest that has Characteristics of Equity and Liabilities 1284.9 Discount on Issuance 1314.10 Increasing Rate Preferred Stock 1324.11 Equity Issuance Costs 1334.12 Subscriptions Receivable 1364.13 Shares Issued in Exchange for a Note Receivable 1374.14 Treasury Stock 1395 Additional Paid-In Capital 1555.1 Terminology 1555.2 Additional Paid-In Capital Versus Other Paid-In Capital Accounts 1555.3 Presentation of Additional Paid-in Capital 1695.4 The Capital Surplus Model 1706 Retained Earnings 1736.1 Terminology and Definitions of Terms 1736.2 Basic Principle of Retained Earnings 1766.3 Categorization of Items that may Affect Retained Earnings 1766.4 Items that may Directly Affect the Beginning Balance of Retained Earnings 1776.5 Items that may Affect the Ending Balance of Retained Earnings 2216.6 Direct Transfer to/from Retained Earnings without Passing through Profit or Loss 2266.7 Income Tax Relating to Transactions that Directly Affect Retained Earnings 2296.8 Presentation and Disclosure of Retained Earnings 2296.9 Dividends 2376.10 Towards a Theory of Retained Earnings 2397 Other Comprehensive Income 2417.1 Terminology 2417.2 Definitions of Terms 2447.3 The All-inclusive or Clean-Surplus Concept of Income 2477.4 Purpose of Reporting Income and its Components 2507.5 Linkage to Theories of Performance 2617.6 Linkage with Capital Maintenance Concepts 2697.7 The Other Comprehensive Income Dilemma 2767.8 Recycling 2817.9 Reporting Comprehensive Income and Other Comprehensive Income 2867.10 Foreign Currency Translation Adjustment 3137.11 Certain Long-Term Items 3257.12 Highly Inflationary Economies 3297.13 Hedges of a Net Investment in Foreign Operations 3337.14 Available-for-Sale Investments 3377.15 Cash Flow Hedges 3497.16 Revaluation Model 3527.17 Consolidation, Deconsolidation, and Change in Interest in an Investment 3607.18 Pension Accounting 3677.19 Recent Developments for Financial Instruments 3747.20 Shadow Accounting 3777.21 Towards a Comprehensive Model of Equity and Other Comprehensive Income 3778 Presentation of Taxes on Equity Items 3818.1 Intraperiod Tax Allocation to Equity 3818.2 Income Tax Recognized in Equity 385Bibliography 419Index 423