Statement Of Comprehensive Income Flashcards
1
Q
What is the purpose of reporting comprehensive income?
A
The purpose of requiring the reporting of comprehensive income is to report the net change in equity other than from transactions with owners in a single amount and to provide a more complete picture of the total earnings of the firm for a period.
Other Comprehensive Income = Unrealized gain or loss on available for sale securities + Foreign currency translation adjustments + Derivative gains and losses + Unrecognized pension and post-retirement costs and gains
Comprehensive Income = Net income + Other Comprehensive Income
