F-1 COMPREHENSIVE INCOME Flashcards
1
Q
Q: Define comprehensive income. FAR 1-29
A
- Change in equity (net assets) that results from revenue, expenses, gains, and losses during a period, as well as any other recognized changes in equity that occur for reasons other than investments by owners and distributions to owners.
2
Q
Q: Identify five items included in other comprehensive income.
Hint: “PUFER”
FAR 1-30
A
- ** P**ension adjustments.
- Unrealized gains and losses on available-for-sale securities.
- Foreign currency translation adjustments and gains/losses on foreign currency transactions that are designated as economic hedges of a net investment in a foreign entity.
- Effective portions of cash flow hedges.
- Revaluation surpluses (IFRS only).
3
Q
Q: List the three formats acceptable for reporting comprehensive income.
Which format is prohibited under IFRS?
FAR 1-31
A
- Statement of Comprehensive Income (single-statement approach).
- Statement of Income followed by separate Statement of Comprehensive Income (two-statement approach).
- Component of the Statement of Owners’ Equity (prohibited under IFRS, will be prohibited under U.S. GAAP for public companies as of 12/15/11 and for non-public companies as of 12/15/12).
4
Q
Q: List some disclosure requirements for comprehensive income.
FAR 1-32
A
- Tax effects of each component included in current “Other Comprehensive Income.”
- Changes in the accumulated balances of components of “Other Comprehensive Income.”
- Total accumulated other comprehensive income.
- Reclassification adjustments between other comprehensive income and net income.