If you are using IBC and the AISC Specification for Structural Steel Buildings (AISC 360-10, for example), the interaction of axial tension and flexure should be evaluated using Eq. (H1-1a) or Eq. (H1-1b), neither of which are as conservative as the equation you quote. The quoted equation is permitted by AISC in Specification Section H2. Note that if your member is doubly symmetric and subject to strong-axis bending, the flexural strength may be increased by the factor given in Specification Section H1.2. Note also that AISC permits a "more detailed analysis" of flexure and axial tension, in lieu of Eq. (H1-1a) and Eq. (H1-1b).