Statement of Comprehensive Income

Question 1

What is comprehensive income

Answer 1

It represents nonowner transactions

Question 2

What is Total Comprehensive Income

Answer 2

It’s Net Income + Other Comprehensive Income

Question 3

What Net Income includes

Answer 3

It includes:

1. Income from continuing operations
2. Income from Discontinued Operations

Question 4

What OCI include

Answer 4

It includes:

1. (P) Pension Adjustments
2. (U) Unrealized gain on AFS
3. (F) Foreign Currency Translation
4. (E) Effective portion of Cash Flow Hedge

Question 5

According to FASB Conceptual Framework what causes earnings to differ from Comprehensive Income

Answer 5

OCI Elements

1. Pension Adjustments
2. Unrealized gains/losses on AFS
3. Foreign Currency Translation
4. Effective Portion of Cash Flow Hedge