F1 M7

Question 1

What is comprehensive income

Answer 1

Comprehensive Income: Change in equity (net assets) that results from transactions and
other events and circumstances from nonowner sources (AOCI shown on BS along
with all other SOE accounts)

Question 2

Equation for comprehensive income

Answer 2

NI + OCI = Comprehensive income

Question 3

Where does comprehensive income go on a financial statement

Answer 3

Other comprehensive income goes to equity/accumulated OCI

Answer 4

PUFIE goes on OCI

Answer 5

Accumulated Other Comprehensive Income (Equity): A component of equity that
includes the total of OCI for the current period and all previous periods

Answer 6

OCI for the period is “closed” to this account, which is reconciled each period (it is just
like closing NI to RE)

Answer 7

All accounts in AOCI will eventually end up on the IS (when the time comes)

Answer 8

Components of OCI may be reported either net of tax or before related tax effects, with
one amount shown for the aggregate income tax exp or benefit related to the total of OCI
items

Answer 9

OCI can either be its own separate statement or can be reported after NI

Answer 10

Income tax exp or benefit allocated to each component of OCI is disclosed either on the
face of the statement in which those components are displayed or in the notes to the FS