K,L describe, calculate, and interpret comprehensive income; describe other comprehensive income, and identify major types of items included in it.

Question 1

Calc. other comp. inc

Answer 1

NI - currency translation, min. pension liab, available for sale sec’s, CF hedges.

Question 2

Net Income is added to SE through…

Answer 2

Retained Earnings

So, any trans. that effects NI will affect OE

Question 3

Includes all changes in equity except for…

Answer 3

owner contributions and distributions aka comprehensive income

Question 4

The sum of income and other comprehensive income is…

Answer 4

comprehensive income

Question 5

‘Other’ Comprehensive Income includes

Answer 5

Currency translations

Pension Liabilities

CF hedge derivative G’s and L’s on certain derivatives

Available-for-sale security G’s and L’s: Inv. sec. that are not expected to be held to maturity or sold in the near term (BS @ Fair Value)

Unrealized gains, losses - not rep. IS but reported SE as a component of other comprehensive income.

Question 6

Unrealized Gains, Losses

Answer 6

Changes in fair value before securities are sold

Question 7

IFRS and Long-Lived Assets

Answer 7

Can report at fair value, which ends up on other comprehensive income

Question 8

Transactions with shareholders and other compr. inc

Answer 8

Transactions with shareholders are not included in other comprehensive inc. Trans. include for ex: dividends paid and the reacquisition of common stock.