Statement of Comprehensive Income

Question 1

What’s the formula for comprehensive income?

Answer 1

Net Income + OCI = Comprehensive Income

Question 2

How is Treasury Stock reported?

Answer 2

It is deducted from stockholder’s equity and not a component of OCI

Question 3

Unrealized Gain/Loss on AFS is known as by what other name?

Answer 3

FV through OCI or FVOCI

Question 4

What’s the difference between 2 statement approach of OCI and single statement approach?

Answer 4

2 statement approach begins with Net Income (NI). Single statement approach begins with sales revenue and then work its way towards NI and then to OCI.

Question 5

What are the components of OCI?

Answer 5

1. Derivative CASH FLOW Hedge
2. Excess Adjustment of DEFINED BENEFIT PENSION plan (projected and not accumulated)
3. Net UNREALIZED holding gains or loss on AFS DEBT securities
4. TRANSLATION (L-OCI) adjustments from foreign currencies

Question 6

How is reporting of Transaction vs. Translation loss/gain different?

Answer 6

TransAction - NI (ANI)
TransLation - OCI (LOCI)

Question 6

Does NI include gain from discontinued operations?

Answer 6

Yes

Question 7

Stock Transactions and Dividends are not included in Comprehensive Income

Answer 7

Comprehensive includes only NONowner changes in EQUITY.