1 2 IASB FASB DP [2008] DP [2008] ASBJ International Accounting Standards BoardIASB Financial Accounting Standards BoardFASB comprehensive income net income earnings
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A Study of the Institutionalization of the Comprehensive Income Statement An Inquiry into Accounting Theory The purpose of this paper is to clarity the position and nature of net income and comprehensive income through the research of the process of the Institutionalization of the Comprehensive Income Statement, and aiming at a coherent accounting theory. Prior toapril 2004, many standard-setting organizations projects on financial performance reporting were being conducted independently. Members of the projects issued several documents about financial performance reporting. For example, members of the former G41 issued Special Reports in January 1998 and Septmber 1999. However, they could not reach a final decision. In April 2004, the IASB and FASB agreed that a project of this nature should be conducted jointly to promote the convergence of accounting standards used internationally. On October 16, 2008, this joint project of the both Boards published a discussion paper, Preliminary View on Financial Statement Presentation. Now the joint project is discussing theestablishment of standards that will guide the organization and presentation of information in financial statements. This paper analyzes the above process of the institutionalization based on double entry book-keeping system, and suggests that there is a need to change the current accounting theory based on net income in order to establish standards for cohesive financial statements.