Comprehensive Income

Question 1

What is the mneumonic for Other Comprehensive Income?

Answer 1

PUFER

Question 2

What are the different types of other comprehensive income?

Answer 2

Pension adjustments, unrealized gains and losses, foreign currency items, effective portion cash flow hedges, and revaluation surplus

Question 3

What is the equation for comprehensive income?

Answer 3

Net income plus other comprehensive income

Question 4

What are the different types of unrealized gains and losses?

Answer 4

“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

Question 5

What principles are used for revaluation surplus?

Answer 5

IFRS

Question 6

What moves other comprehensive income items from accumulated other comprehensive income to the income statement?

Answer 6

Reclassification adjustments

Question 7

What does accumulated other comprehensive income include?

Answer 7

Total other comprehensive income for the period ad previous periods

Question 8

What are the components of comprehensive income closed to?

Answer 8

The balance sheet

Question 9

Where is net income closed to ?

Answer 9

Retained earnings

Question 10

Where is other comprehensive income closed to?

Answer 10

Accumulated other comprehensive income

Question 11

Comprehensive income and its components shall be displayed in a financial statement that is presented with the same prominence as?

Answer 11

The other financial statements that constitue a full set of financial statements

Question 12

What entities do not require presentation of comprehensive income?

Answer 12

Not for profit

Question 13

What basis should comprehensive income not be reported on?

Answer 13

Per share basis

Question 14

Comprehensive income may be presented in?

Answer 14

Single statement approach and two-statement approach

Question 15

Where is other comprehensive income located on a single statement approach?

Answer 15

Below net income

Question 16

What 2 ways can components of other comprehensive income be reported?

Answer 16

Net of tax or before related tax effects

Question 17

The amount of income tax expense or benefit allocated to each component of other comprehensive income is disclosed either on?

Answer 17

Face of the statement where components are displayed or in the notes of the financial statements

Question 18

Should comprehensive income be reported during interim?

Answer 18

Yes

Question 19

What must be be disclosed regarding other comprehensive income?

Answer 19

Tax effects of each component, changes in accumulated balances, total accumulated other comprehensive income, and reclassification adjustments

Question 20

When is pension adjustments not recognized as other comprehensive income?

Answer 20

A component of net periodic benefit cost

Question 21

Are pension adjustments reclassified under IFRS?

Answer 21

No

Question 22

When is unrealized gains and losses not recognized as other comprehensive income?

Answer 22

When securities are sold

Question 23

When is foreign currency items not recognized as other comprehensive income?

Answer 23

The sale or liquidation of the investment in the foreign entity

Question 24

When are the effective portion of cash flow hedges not recognized as other comprehensive income?

Answer 24

When cash flows associated with the hedged item are realized

Question 25

Are revaluation surplus reclassified in subsequent years?

Answer 25

No

Question 26

Where can revaluation surplus be transferred to?

Answer 26

Directly to retained earnings when the related asset is used or derecognized