19-Income Statement

Question 1

What are other comprehensive income items?

Answer 1

(1) . Foreign currency translation adjustments;
(2) . Unrealized holding gains and losses on securities available for sale;
(3) . Pension and other post-retirement benefit plan cost adjustments;
(4) . Certain deferred derivative gains and losses.

Question 2

What are the two exceptions to the all inclusive income statement?

Answer 2

Income statement do not include

a) prior period adjustments which are shown on statement of RE
b) Other comprehensive income(OCI) items which are shown on the statement of OCI.

Question 3

Whats are prior period adjustments?

Answer 3

Prior period adjustments are shown on the Statement of Retained Earnings and are the correction of accounting errors affecting income of prior years.