3-5 Other Comprehensive Income

Question 1

Comprehensive Income

Answer 1

Includes all changes in equity during a period from transactions and events from nonowner sources

Question 2

Comprehensive Income Equation

Answer 2

Net Income or Net Loss + or - Other Comprehensive Income/Loss, net of tax

Question 3

Other Comprehensive Income (OCI)

Answer 3

Includes revenues, expenses, gains, and losses that are included in comprehensive income but not in net income in accordance with GAAP

Question 4

What are examples of Other Comprehensive Income?

Answer 4

Unrealized holding gains (or losses)

Foreign currency translation adjustments

Question 5

Single Continuous Statement of Comprehensive Income format

Answer 5

Revenues
(Expenses)
=Net Income
OCI (net of tax)
=Comprehensive Income

Question 6

Two separate but consecutive statements of income and comprehensive income format

Answer 6

Revenues
(Expenses)
=Net Income

Net Income
OCI (net of tax)
=Comprehensive Income

Question 7

Functional Currency

Answer 7

Currency of the primary economic environment in which the entity generates and expends cash