021 Stmt of Comprehensive Income Flashcards Preview

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Flashcards in 021 Stmt of Comprehensive Income Deck (9)
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1
Q

What is the main purpose of disclosing comprehensive income?

A

To report the net change in equity in a single amount.

2
Q

What is comprehensive income?

A

Net income plus or minus unrealized gains and losses on securities available for sale, unrealized pension cost, certain unrealized gains and losses on derivatives, and foreign currency translation adjustments.

3
Q

What are the two ways of reporting comprehensive income?

A

As a separate statement of comprehensive income or as part of the income statement.

4
Q

What is net income plus or minus other components of comprehensive income?

A

Comprehensive income.

5
Q

What are other comprehensive income items?

A

Unrealized gains and losses on securities available for sale, unrecognized pension gains and losses, foreign currency translation adjustments, certain derivative gains and losses.

6
Q

What type of account is accumulated other comprehensive income (AOCI)?

A

Owner’s equity.

7
Q

What is other comprehensive income (OCI) reclassification adjustment?

A

When an OCI item from previous year is removed from accumulated other comprehensive income (AOCI).

8
Q

What are the types of statements of other comprehensive income?

A

1) Single statement of net income and comprehensive income; and 2) two separate statements: a statement of net income and a statement of comprehensive income.

9
Q

Does International Financial Reporting Standards (IFRS) allow revaluation of plant assets and intangibles to fair value as a other comprehensive income item?

A

Yes, allows this.