Statement of Comprehensive Income (F1:M7) Flashcards
comprehensive income includes all components of ___ and ___.
net income; other comprehensive income
what are the 5 main components of OCI? (PUFIER)
pension changes in funded status; G/L, prior service costs (included in OCI until recognized as a component of net periodic benefit cost)
unrealized G/L (available-for-sale securities)
foreign currency items (translation adjustments, G/L on transactions that are DESIGNATED AS (and are effective as) ECONOMIC HEDGES
instrument-specific credit risk
effective portion of cash flow hedges
revaluation surplus (GAINS!!) (IFRS only)
what is the purpose of reclassification adjustments?
to move OCI items from AOCI to the income statement
*avoids double counting
at the end of each accounting period, all components of comprehensive income are closed to the ___. Net income is closed to ___, and OCI is closed to ___.
balance sheet; retained earnings; accumulated OCI
under both GAAP and IFRS how can comprehensive income be presented?
as a single statement of comprehensive income (single-statement approach)
an income statement followed by a separate statement of comprehensive income that begins with net income (two-statement approach)
as it pertains to OCI, disclosure is required for?
changes in AOCI
reclassifications out of AOCI
what does comprehensive income exclude?
changes in equity resulting from investments by owners and distributions to owners
under IFRS, how are revaluation losses accounted for?
charged directly to the income statement *each class of asset is calculated separately
if a revaluation gain is a reversal of a previously recognized revaluation loss where is it reported?
in the income statement
does a company that has no items of OCI have to present a statement of comprehensive income?
no!
when translating a foreign FS, where would the G/L from remeasurement method and translation method be recorded?
R: net income
T: OCI
will contributions to a plan made by the company itself impact OCI?
no!
the amortization of an actuarial loss will have what effects?
cause OCI to increase, while causing net income to decrease because pension expense is increasing
what is the formula for calculating ending shareholders’ equity?
beginning shareholders' equity (dividends paid) new shares issued (shares repurchased) comprehensive income \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
does the amortization of prior period pension service cost increase or decrease OCI?
increase
