TWO FOR THE PRICE
OF ONE

The Financial Accounting Standards Board on June 20 issued two exposure drafts of considerable importance. The first, "Reporting Comprehensive Income," was a relatively short time in the making, but represents a major development--the introduction of a new financial statement and a new bottom line for business-type enterprises. The second, "Accounting for Derivative and Similar Financial Instruments and for Hedging Transactions," was a long time in the making and finally proposes the measurement aspects of accounting for derivatives. The two are very much interrelated because the proposed accounting for derivatives calls for the use in some instances of comprehensive income. The two statements have the same comment deadline of October 11, 1996, and will be the subjects of joint hearings scheduled for November 15, 18, and 19, 1996, (November 20, if necessary) at FASB Offices in Norwalk, Connecticut. Because of the significance of the two proposals, The CPA Journal is presenting articles on both in this issue. Although the comment deadline is shortly after the mail date of the October issue to subscribers, FASB will be receptive to comments after the official deadline at least up to the date of the hearings. Readers are encouraged to become familiar with the proposals--they represent major changes to financial accounting. *