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Statement of Comprehensive Income Lessons

The statement of comprehensive income (SCI) shows a company's financial performance over a period of time. It includes items of income and expenses recognized in the income statement as well as other comprehensive income. The SCI presents profit or loss, other comprehensive income, and total comprehensive income. It discloses items such as revenue, expenses, taxes, profit or loss, and comprehensive income attributable to the company and non-controlling interests. Other comprehensive income comprises items not recognized in profit or loss but in equity such as changes in fair values and foreign currency translations.

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Darlyn Dalida San Pedro
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26 views

Statement of Comprehensive Income Lessons

The statement of comprehensive income (SCI) shows a company's financial performance over a period of time. It includes items of income and expenses recognized in the income statement as well as other comprehensive income. The SCI presents profit or loss, other comprehensive income, and total comprehensive income. It discloses items such as revenue, expenses, taxes, profit or loss, and comprehensive income attributable to the company and non-controlling interests. Other comprehensive income comprises items not recognized in profit or loss but in equity such as changes in fair values and foreign currency translations.

Uploaded by

Darlyn Dalida San Pedro
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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STATEMENT OF COMPREHENSIVE INCOME

- Traditionally it is called Income Statement of Profit and Loss (P&L)


- Composed of Income Statement and Other Comprehensive Income
- Shows the financial performance of the company
- Consists of Income and Expenses (including revenie and gains as well as operating expenses, finance costs and losses)

An entity shall present all items of income and expenses recognized in a period:
a. In a single statement or
b. In two statements:
1. A statement displaying components of profit or loss (separate income statement); and
2. A second statement beginning with profit or loss and displaying components of other comprehensive income
(statement of comprehensive income)

INFORMATION (LINE ITEMS) PRESENTED IN THE STATEMENT OF COMPREHENSIVE INCOME


a. Revenue
b. Finance Costs
c. Share of the profit or loss of associate and joint ventures accounting using the equity method
d. Tax Expense (both current and deferred)
e. A single amount comprising the total of:
1. The post-tax profit or loss of discontinued operations, and
2. The post-tax gain or loss recognized on the measurement to fair value less cost to sell or on the disposal of the
assets or disposal group(s) constituting the discontinued operations
f. Profit or loss
g. Each components of other comprehensive income classified by nature (excluding amounts in letter H)
h. Share of the other comprehensive income of associates and joint ventures accounted for using the equity method
i. Total comprehensive income

NOTE: An entity shall disclose the following items in the SCI as allocations of profit or loss for the period:
j. Profit or loss for the period attributable to:
1. non-controlling interests, and
2. owners of the parent
k. Total comprehensive income for the period attributable to:
1. non-controlling interests, and
2. owners of the parent
OTHER COMPREHENSIVE INCOME
Other comprehensive income comprises items of income and expense (including reclassification adjustments) that are not
recognized in profit or loss as required or permitted by other PFRS.

COMPONENTS OF OTHER COMPREHENSIVE INCOME


a. Unrealized gain or loss on equity investment measured at FVOCI.
b. Unrealized gain or loss on debt investment measured at FVOCI.
c. Gain or loss from translation of the FS of a foreign operation.
d. Revaluation surplus during the year.
e. Unrealized gain or loss from derivative contracts designated as cash flow hedge.
f. Remeasurements of defined benefit plan, including actuarial gains or loss.
g. Change in FV attributable to credit risk of a financial liability designated as FVPL.

Items that can be reclassified to Profit or Loss (B, C, E)


Items that cannot be reclassified to Profit or Loss, but to Retained Earnings (A, D, F, G)

NOTE:
Certain items must be disclosed either on the face of the SCI or in the notes, in material, including:
- Write-downs of inventories to net realizable value or of PPE to recoverable amount, as well as reversals of such write-downs.
- Restructuring of the activities of an entity and reversals of any provisions for the costs of restructuring.
- Disposals of items of PPE
- Disposals of investment
- Discontinued operations
- Litigation settlements
- Other reversals of provisions

NOTE:
An entity shall present an analysis of expenses recognized in profit or loss using a classification based on either their nature
or their function within the entity, whichever provides information that is reliable and more relevant. Analysis can be in the
form of:
a. Nature of Expense Method
- according to nature (ex: depreciation, purchase of materials, transport costs, employee benefits and advertising costs)
b. Function of Expense Method or Cost of Sales Method
- classify expenses according to function as part of cost of sales (ex: distribution costs or administrative costs)

At a minimum, an entity discloses its cost of sales under this method separately from other expenses.
If the entity used the function of expense method, additional disclosure is required about the nature of expenses, including
depreciation, amortization and employee benefits expenses.
An entity shall not present any items of income or expenses as extraordinary items, in the SCI or separate income
statement (if presented) or in the notes.

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