Module 7: Statement of Comprehensive Income

other comprehensive income

-PUFIER -goes to equity -revenues, expenses, gains, or losses that are included in comprehensive income but excluded from net income under U.S. GAAP

condensed financial statements of interim periods issued to shareholders

A total for comprehensive income shall be reported how?

Face (of Financial Statements or Notes)

Changes in the accumulated balances by component may be shown where?

-net of tax -before related tax effects with one amount show for the aggregate income tax expense

Components of other comprehensive income may be reported as either?

foreign currency items

Foreign currency translation adjustments and gains and losses on foreign currency transactions held in OCI till sale or liquidation of investment in foreign entity

-face of the statement -notes to the financial statement

How is the income tax expense or benefit disclosed?

-presented with the same prominence as the other financial statements that constitute a full set of financial statements -not be reported on a per share basis

How should comprehensive income be displayed?

1. Income from continuing operations 2. Discontinued operations

Net income includes the following:

comprehensive income

The change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

-unrealized holding gains and losses on AFS debt securities -unrealized holding gains and losses that result from a debt security being transferred into the AFS category from "held to maturity" -subsequent decreases or increases in the fair value of AFS debt securities previously written down as impaired

The following types of unrealized gains and losses on certain investments in debt securities are reported as components of other comprehensive income until the securities are sold:

-a single statement of comprehensive -two-statement approach

Under U.S. GAAP, comprehensive income may be presented in:

-avoids double accounting -move other comprehensive income items from accumulated other comprehensive income to the income statement

What are reclassification adjustments?

-tax effects of each component -changes in the accumulated balances -total accumulated other comprehensive income in the balance sheet -reclassification adjustments

What are the required disclosures?

-pension adjustments -unrealized gains and losses -foreign currency items -instrument specific credit risk -effective portion of cash flow hedges -revaluation surplus (IFRS only)

What included in PUFIER?

-reclassification adjustments -current-period OCI

changes in AOCI balances by component must separately disclose what?

pension adjustments

changes in the funded status of a pension plan due to gains or losses, prior service costs, and net transition assets or obligations

accumulated other comprehensive income

component of equity that includes the total of other comprehensive income for the current period and all previous periods

net income + other comprehensive income

comprehensive income formula