F-1CI Flashcards
(21 cards)
What is a comprehensive income?`
Change in equity of a business and other events except Investment and Distribution by owners.
What include Other Comprehensive Income? PUFE R
- Pension adjustments
- Unrealized Gains and Losses
- Foreign Currency Items
- Effective portion cash flow hedges
- Revaluation Surplus (IFRS)
What is the calculation of Comprehensive Income?
Step1- Net Income
Step2- Other comprehensive income
what is other comprehensive income?
All revenues, expenses, gain, losses that are included in comprehensive income but excluded from Net Income.
What is Pension Adjustments?OCI
- cualquier cambio en los fundos de pensión, incluyendo costos por servicio y transiciones de activos y deudas netas serán reconocidos en el periodo corriente en OCI.
- Cuando se amorticen, entonces van al INCOME STATEMENT
What is Unrealized Gain and Losses? OCI
and what include?
-are reported until the securities are sold
-Include:
Unrealized holding gains and losses on available for sale;
any held to maturity transfer to available for sale securities and
any subsequent increase or decrease in the fair value of AVS previously written down as impaired.
What is Foreign Currency Items? OCI
- foreign currency adjustments
- gain or losses on foreign transaction in net investments and remain on OCI until the sale or liquidation of the investment in the foreign entity.
What mean Effective Portion of Cash Flow Hedges? OCI
- Is derivatives
- are reported until the cash flows associated are realized.
What mean revaluation surplus? OCI
- is only under IFRS
- es un ajuste en activo fijo o intangible para aumentarlo.
What means reclassification adjustments?
-move other comprehensive income items from accumulated OCI to the income statement.
What is accumulated other comprehensive income?
- component of equity
- includes total of other comprehensive income for the period and previous periods.
- at the end of each period OCI is close to this account
Requirement of Statement of Comprehensive Income?
- do not apply for non-for profit
- should not be reported on a per share basis.
Two types of statements of Comprehensive income?
-Single Statement Approach
-Two Statement Approach
the two statement approach is net of tax
What are the other reporting issues of OCI?
components of OCI are reported :
- Net of tax
- Before related tax effect with one line of the total amount of taxes or benefit.
What are the other reporting issues of Income tax expense or befit?
Te count should be disclose either on the face of the statement or notes.
What are the other reporting issues of interim period?
the OCI shall be reported on quarterly statements.
Disclosure issues of the two formats of Statement of OCI?
-tax effect of each component of OCI (Current)
-Changes in the accumulated balances of each component ( Face of F/S or Notes)
-total accumulated of OCI in the BS as part as Equity
-the reclassification adjustments, include
=Changes in AOCI by components( separately disclose reclassification and current period)
=significant items outs of AOCI (face of F/S or Notes)
How we call the items out of OCI?
Net current-period other comprehensive income.
how can comprehensive income can reported?
Comprehensive income can be reported in a separate statement of comprehensive income or in a statement of income and comprehensive income. Or:
As a component of the “statement of changes of owners’ equity” (U.S. GAAP only).
When we report gain/losses as part of other comprehensive income of a cash flow hedge?
Gains/losses on the effective portion of a cash flow hedge are deferred and reported as a component of other comprehensive income until the hedged transaction impacts earnings.
when we report Prior service costs ?
in the year of the adjustment should be recorded to PBO and other comprehensive income (or loss), which then becomes part of accumulated other comprehensive income (or loss). The unrecognized prior service cost in accumulated other comprehensive income (or loss) is amortized to pension expense over the plan participant’s remaining years of service.
