F1M1 Balance Sheet, Income Statement & Comprehensive Income

Question 1

How material, unusual and infrequent transactions that result in a gain or loss should be presented?

Answer 1

They should be presented in Net Income from Continuing Operations but separately labeled.

Question 2

PUFI

Answer 2

Pension adjustments; Unrealized gain/loss for securities available for sale; Foreign currency translations adjustments; Instrument-specific credit risk

Question 3

When are reclassification adjustments needed in the F/S that disclose Other Comprehensive Income?

Answer 3

To avoid double counting of items previously reported as OCI that now are reported as part of NI. For example: if a AFS security which had unrealized gain in OCI is sold and the gain is reported in NI, the unrealized gain in OCI needs to be reclassified: dr unrealized gain on AFS (OCI); cr AOCI