FAR - Framework, Overview & Statements - General-Purpose Financial Statements - Balance Sheet 1

Question 1

What are two ways of reporting comprehensive income?

Answer 1

As a separate statement of comprehensive income or as a part of the income statement.

Question 2

What is net income plus or minus other components of comprehensive income?

Answer 2

Comprehensive income.

Question 3

What is other comprehensive income (OCI) reclassification adjustment?

Answer 3

When an OCI item form previous year is removed from accumulated other comprehensive income (AOCI).

Question 4

What are the types of statements of other comprehensive income?

Answer 4

1) Single statement of net income and comprehensive income; 2) two separate statements: a statement of net income and a statement of comprehensive income.

Question 5

What is the main purpose of disclosing comprehensive income?

Answer 5

To report the net change in equity in a single amount.

Question 6

What type of account is accumulated other comprehensive income (AOCI)?

Answer 6

Owner’s equity.

Question 7

What are other comprehensive income items?

Answer 7

Unrealized gains/losses on securities available for sale, unrecognized pension gains/losses, foreign currency translation adjustments, certain derivative gains/losses.

Question 8

What is comprehensive income?

Answer 8

Net income plus or minus unrealized gains/losses on securities available for sale, unrealized pension costs, certain unrealized gains/losses on derivatives, and foreign currency translation adjustments.

Question 9

Does IFRS allow revaluation of plant assets and intangibles to fair value as other comprehensive income items?

Answer 9

Yes.