Statement of Comprehensive Income

Question 1

Define comprehensive income

Answer 1

Change in equity (net assets) that results from transactions and other events and circumstances from nonowner sources

Question 2

Identify five items in other comprehensive income

Answer 2

PUFER
Pension adjustments
unrealized gains and losses on available for sale debt securities
F- foreign currency translation adjustments
E- effective portions of cash flow hedges
R- Revaluation of surpluses (IFRS only)

Question 3

What are the two formats that are acceptable for comprehensive income?

Answer 3

Statement of comprehensive income (single-statement approach)
2. Statement of income followed by separate statement of comprehensive income

Question 4

Disclosure requirements for statement of comprehensive income

Answer 4

1. tax effects of each component
2. changes in the accumulated balances of components of comprehensive income
3. total accumulated other comprehensive income
4. reclassification adjustments between OCI