Comprehensive Income Flashcards
What is the mneumonic for Other Comprehensive Income?
PUFER
What are the different types of other comprehensive income?
Pension adjustments, unrealized gains and losses, foreign currency items, effective portion cash flow hedges, and revaluation surplus
What is the equation for comprehensive income?
Net income plus other comprehensive income
What are the different types of unrealized gains and losses?
“available-for-sale securities”, debt security being transferred into the “available-for-sale” category from “held-to-maturity”, and subsequent decreases or increases in the fair value of “available-for-sale” securities previously written down as impaired
What principles are used for revaluation surplus?
IFRS
What moves other comprehensive income items from accumulated other comprehensive income to the income statement?
Reclassification adjustments
What does accumulated other comprehensive income include?
Total other comprehensive income for the period ad previous periods
What are the components of comprehensive income closed to?
The balance sheet
Where is net income closed to ?
Retained earnings
Where is other comprehensive income closed to?
Accumulated other comprehensive income
Comprehensive income and its components shall be displayed in a financial statement that is presented with the same prominence as?
The other financial statements that constitue a full set of financial statements
What entities do not require presentation of comprehensive income?
Not for profit
What basis should comprehensive income not be reported on?
Per share basis
Comprehensive income may be presented in?
Single statement approach and two-statement approach
Where is other comprehensive income located on a single statement approach?
Below net income
What 2 ways can components of other comprehensive income be reported?
Net of tax or before related tax effects
The amount of income tax expense or benefit allocated to each component of other comprehensive income is disclosed either on?
Face of the statement where components are displayed or in the notes of the financial statements
Should comprehensive income be reported during interim?
Yes
What must be be disclosed regarding other comprehensive income?
Tax effects of each component, changes in accumulated balances, total accumulated other comprehensive income, and reclassification adjustments
When is pension adjustments not recognized as other comprehensive income?
A component of net periodic benefit cost
Are pension adjustments reclassified under IFRS?
No
When is unrealized gains and losses not recognized as other comprehensive income?
When securities are sold
When is foreign currency items not recognized as other comprehensive income?
The sale or liquidation of the investment in the foreign entity
When are the effective portion of cash flow hedges not recognized as other comprehensive income?
When cash flows associated with the hedged item are realized
Are revaluation surplus reclassified in subsequent years?
No
Where can revaluation surplus be transferred to?
Directly to retained earnings when the related asset is used or derecognized
