F1 - M7 - Statement of Comprehensive Income Flashcards
Comprehensive Income
Other “stuff”, nonowner transactions, change in equity (net assets),
- Net Income PLUS “Other” Comprehensive Income (PUFIER) = Comprehensive Income
Net Income, Step 1 = No extraordinary, go to RE
- Income from continuing operations
- Discontinued operations
Other Comprehensive Income, Step 2 = “PUFIER”, equity (accumulated OCI)
Pension Adjustments = change in funded status of pension plan
Unrealized Gains and Losses (Available for Sale Debt Securities)
o Until securities are sold
Foreign Currency Items – Translation method = Cumulative Translation Account & OCI or Remeasurement Method = G/L on IS, not on OCI
o Converting currency for other companies, “plug”
Instrument-Specific Credit Risk – labilities, fair value option is elected
Effective Portion of Cash Flow Hedges – other comprehensive income, matching principle
Revaluation Surplus – IFRS Only, intangible assets and fixed assets are revalued
Reclassification Adjustments
Avoids double accounting, moves from OCI to IS, when READY and MATURE
Accumulated Other Comprehensive Income
Equity (just like RE), current and all prior periods, NOT ready
- At the end of an accounting period, CI is closed to the BS, NI is closed to RE, OCI closed to AOCI
Financial Statement Reporting
CI displayed in FS presented in same prominence as other FS (full set), NOT be reported on a per share basis. CI may be presented:
- Single statement
- Two Statement Approach - Income statement followed by a separate statement of CI
OCI Reporting
Either Net of Taxes OR Before Tax Effects, tax should be disclosed on face of statement and/or notes, CI reported in condensed F/S of interim periods issued to shareholders
Required disclosures
- Tax effects of each component
- Changes in accumulated balances
- Total accumulated OCI in the BS
- Reclassification adjustments, avoid double counting
