Comprehensive Income

Question 1

Does International Financial Reporting Standards (IFRS) allow revaluation of plant assets and intangibles to fair value as a other comprehensive income item?

Answer 1

Yes, allows this.

Question 2

What are the types of statements of other comprehensive income?

Answer 2

1) Single statement of net income and comprehensive income; and 2) two separate statements: a statement of net income and a statement of comprehensive income.

Question 3

What is other comprehensive income (OCI) reclassification adjustment?

Answer 3

When an OCI item from previous year is removed from accumulated other comprehensive income (AOCI).

Question 4

What type of account is accumulated other comprehensive income (AOCI)?

Answer 4

Owner’s equity.

Question 5

What are other comprehensive income items?

Answer 5

Unrealized gains and losses on securities available for sale, unrecognized pension gains and losses, foreign currency translation adjustments, certain derivative gains and losses.

Question 6

What is net income plus or minus other components of comprehensive income?

Answer 6

Comprehensive income.

Question 7

What are the two ways of reporting comprehensive income?

Answer 7

As a separate statement of comprehensive income or as part of the income statement.

Question 8

What is comprehensive income?

Answer 8

Net income plus or minus unrealized gains and losses on securities available for sale, unrealized pension cost, certain unrealized gains and losses on derivatives, and foreign currency translation adjustments.

Question 9

What is the main purpose of disclosing comprehensive income?

Answer 9

To report the net change in equity in a single amount.