Comprehensive Income

Question 1

Where is accumulated other comprehensive income reported?

Answer 1

In the stockholders equity section of the balance sheet.

Question 2

What is included with “other comprehensive income”?

Answer 2

It includes revenues, expenses, gains, and losses.

It is included in comprehensive income but excluded from the determination of net income.

Question 3

What is comprehensive income and what does it include?

Answer 3

It is the change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources.

Includes:
- all changes in equity during a period that exclude those that result form investments by owners and distributions to owners

It comprises :

• all components of net income
• all components of other comprehensive income

Question 4

What does other comprehensive income include?

Answer 4

• gains/losses on foreign currency transactions designated as hedges
• gains/losses on derivative instruments
• gains/losses associated with pension or other post retirement benefits
• revenues and expenses

–all included in comprehensive income but excluded from net income