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28 These alternative translation methods are discussed and illustrated in Chapter 15.
29 Hewlett-Packard Company, annual report, October 2007, 109.
30 E.I. du Pont de Nemours Company, annual report, December 2007, Note 25.
31 Bristol-Myers Squibb Company, annual report, December 2007, Note 24.
32 SFAS No. 130, Reporting Comprehensive Income (Norwalk, CT: FASB, June 1997).
33 Translation (remeasurement) gains and losses that result from the application of the temporal
(remeasurement) method continue to be included in the income statement as part of conventional net
income. Only translation adjustments that result from application of the all-current translation method
are included in other comprehensive income. Some gains and losses for financial derivatives used as
hedges are also included in other comprehensive income. SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities (Norwalk, CT: FASB, November 1998).
34 SFAS No. 158, Employers’ Accounting for Defined Benefit and Other Postretirement Plans
(Norwalk, CT: FASB, September 2006).
35 The FASB-IASB proposal for a new income statement format would require the presentation of
other comprehensive income with net income. Financial Accounting Standards Board, Discussion
Paper: Preliminary Views on Financial Statement Presentation (Stamford, CT: FASB, October 2008).
36 An annual survey conducted by American Institute of Certified Public Accountants reveals the
following pattern of adoption of the alternative reporting methods of SFAS No. 130, for 581 firms in
2006: (1) a combined statement of income and comprehensive income, 21 firms; (2) a separate
statement of comprehensive income, 75 firms; and (3) reporting comprehensive income directly in
shareholders‟ equity, 485 firms. AICPA, Accounting Trends and Techniques (New York: AICPA,
2007), Table 4-1.
37 The sustainable earnings base (SEB) worksheet template was developed by E. Comiskey and C.
Mulford for earlier editions of this book.
38 This search sequence was developed by Eugene E. Comiskey and Charles W. Mulford, based on H.
Choi, Analysis and Valuation Implications of Persistence and Cash-Content Dimensions of Earnings
Components Based on Extent of Analyst Following, unpublished PhD thesis, Georgia Institute of
Technology, October 1994.
39 SFAS No. 141R, Business Combinations—Revised 2007 (Norwalk, CT: FASB, December 2007).