Comprehensive Income

Question 1

Components of Other Comprehensive Income

Answer 1

1. Pension Adjsutments
2. Unrealized gains/losses on Available-for-Sale Securities ( not HTM or Trading)
3. Foreign currency items
4. Effective Portion of cashflow hedges
5. Revaluation surplus (IFRS)

Question 2

Comprehensive Income =

Answer 2

Net Income per Income Statement + PUFER

Question 3

OCI items are recorded where?

Answer 3

Directly to Equity

Question 4

Unrealized Gains & Losses in OCI include:

Answer 4

1. Unrealized holding G/L on Available for Sale Securities
2. Unrealized G/L from transfer of a debt security from AFS to HTM
3. Subsequent Increase/Decrease in AFS securities previously impaired.

Question 5

At the end of the accounting period Comprehensive Income is closed to the…

Answer 5

BS, NI is closed to RE & OCI is closed to Accum. OCI

Pass Key

Question 6

Reporting OCI

Answer 6

Either: 1. Net of tax or 2. before tax with one amount for aggregate Income Tax expense.

Question 7

Required Disclosures (OCI)

Answer 7

1. Tax effects for each component (presented or in notes)
2. Changes in Accum. balances (face or notes)
3. Total Accum. OCI
4. Reclassification adjustment