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
