F1 - Comprehensive Income Flashcards
1
Q
Order of Other Comprehensive Income Presentation
A
PUFE R: P - Pension adjustments U - Unrealized G/L on AFS securities F - Foreign translation adjustments E - Effective portion of cash flow hedges R - Revaluation surplus (IFRS only)
2
Q
Why are reclassification adjustments included in AOCI?
A
To avoid double counting by moving income items from AOCI to I/S
3
Q
What line item does the single-statement approach to OCI start with?
A
Revenues
4
Q
What line item does the two-statement approach to OCI start with?
A
Net income
5
Q
Where can adjustments to AOCI be recorded/disclosed?
A
On the face or in the notes
6
Q
What is the purpose of reporting comprehensive income?
A
To summarize all changes in equity from non-owner sources
7
Q
In which section of the balance sheet (statement of financial position) is AOCI included?
A
Stockholders’ equity
