Statement of comprehensive income

Question 1

SCI: What should the bottom line in the statement of comprehensive income be?

Answer 1

The total comprehensive income for the period

Question 2

SCI: If PPE is carried on the revaluation model, which statement approach should be used for presenting income?

Answer 2

The two separate statement approach, where there is a statement of comprehensive income and a separate statement of other comprehensive income, which will include the gain or loss on PPE.

Question 3

SCI: What are the two options for presenting expenses?

Answer 3

Function of expense and nature of expense.

Question 4

SCI: Which method is also known as the cost of sales method?

Answer 4

Function of expense.

Question 5

SCI: How does the Conceptual Framework for Financial Reporting define income?

Answer 5

Income is increases in economic benefits during the accounting period in the
form of inflows or enhancement of assets or decreases of liabilities that result
in increases in equity, other than those relating to contributions from owners.