Comprehensive Income

Question 1

“PUFE R”

Answer 1

P - Pension adjustments
U - Unrealized gains/losses (available for sale securities)
F - Foreign currency items
E - Effective portion cash flow hedges
R - Revaluation surplus (IFRS only)

This is all in OCI.
“PUFE likes to revalue his income”

Question 2

Comprehensive Income

Answer 2

Net Income
+ Other Comprehensive Income (PUFER)
= Comprehensive Income

• not reported on a per share basis
• presented two ways: single-statement approach or two-statement approach

Question 3

Reclassification adjustments

Answer 3

Moves OCI items from accumulated OCI to the income statement.
Avoids double counting

Question 4

Accumulated OCI

Answer 4

A component of equity that includes the total of OCI for the period and previous periods. OCI for the current period is closed to this account, which is reconciled each period similar to the manner in which retained earnings are reconciled.
(Like retained earnings)

Question 5

Required disclosures for comprehensive income

Answer 5

• tax effects of each component included
• changes in the accumulated balances
• total accumulated OCI in the balance sheet as an item of equity
• reclassification adjustments