Statement of Comprehensive Income

Question 1

What are the two ways of reporting comprehensive income?

Answer 1

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

Question 2

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

Answer 2

Yes.

Question 3

What are other comprehensive income items?

Answer 3

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

Question 4

What are the types of statements of other comprehensive income?

Answer 4

1. Single statement of net income an 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 is the net income plus or minus other components of comprehensive income?

Answer 6

Comprehensive income

Question 7

What is other comprehensive income (OCI) reclassification adjustment?

Answer 7

When an OCI item from previous year is removed from accumulate other comprehensive income (AOCI)

Question 8

What is comprehensive income?

Answer 8

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

Question 9

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

Answer 9

Owners equity

Question 10

What is the purpose of reporting comprehensive income?

Answer 10

To summarize all changes in equity from non owner sources.