Latin American Capital Markets

Financial statement formats Specific line items are required SEC regulations require specific formats but notunder FASBCopyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pubACCOUNTING AND AUDITING STANDARDS 233Accounting changes—nonrequiredEither restate or include cumulative effect inRestateearnings 3Comprehensive income Reporting not required 2 Reporting requiredStatement of cash flows Interest received and paid could be recorded asoperating, investing, or financingInterest received and paid is recorded asoperatingConstruction contracts for whichthe percentage of completioncannot be determinedCapitalization of interest onconstructed assetsCost recovery methodOptionalCompleted contract methodRequiredPreferred shares —mandatoryredemptionRecorded as liabilitySplit between liabilities and equityInvestment in joint ventures —incorporatedChange in value on investmentswith not readily available marketSpecial-purpose entities (SPEs)Equity method or proportionate consolidationEither in equity with recycling or in earnings 3Must be consolidated if controlledEquity methodIn equity with recyclingQualifying SPEs are not consolidated'The IASB currently has a convergence project with U.S. GAAR