Statement of Comprehensive Income

Question 1

Presentation of Comprehensive Income (2 ways)

Answer 1

1. Single Statement (in combination with the income statement
2. Two Statement Approach (separate statement of income and a separate statement of comprehensive income)

Question 2

Comprehensive Income Defined

Answer 2

Designed to report the change in net assets during the period from all sources other than from transactions with owners.
There are two components of comprehensive income:
1. Net income
2. “Other“ comprehensive income
CI = NI + OCI

Question 3

“Other“ Comprehensive Income Items (OCI)

Answer 3

Included in comprehensive income but not in income (net of tax):

1. Unrealized gains and losses on securities available for sale (AFS)
2. Unrecognized pension benefit cost and gains
3. Foreign currency translation adjustments
4. Certain deferred gains and losses from derivatives