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.
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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).
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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).
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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.
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