Stream I - Lecture 1

Question 1

What is included in other comprehensive income?

Answer 1

Valuation gains and losses:

• Gains on property revaluation
• Exchange differences (translating foreign operations, NOT COSTS)
• Gains/losses on cash flow hedges
• Actuarial gains/losses (pension plans)

Question 2

What is clean surplus accounting?

Answer 2

All changes in equity other than transactions with owners are reflected in the income statement (statement of comprehensive income)