Scribd
Upload
76 views

Chapter 2 Statement of Comprehensive Income

This document provides an overview of comprehensive income and income statements under PAS 1. It defines comprehensive income as the change in equity from transactions other than with owners. Profit or loss is the bottom line from the traditional income statement, while other comprehensive income comprises non-profit/loss items. It discusses the two approaches to presenting comprehensive income and lists components of other comprehensive income and certain items requiring income statement disclosure.

Uploaded by

michelle cadiao
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
76 views

Chapter 2 Statement of Comprehensive Income

This document provides an overview of comprehensive income and income statements under PAS 1. It defines comprehensive income as the change in equity from transactions other than with owners. Profit or loss is the bottom line from the traditional income statement, while other comprehensive income comprises non-profit/loss items. It discusses the two approaches to presenting comprehensive income and lists components of other comprehensive income and certain items requiring income statement disclosure.

Uploaded by

michelle cadiao
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

ACC120A Intermediate

Accounting, Part 3
Dean Mark Alex B. Cadiao, CPA, MBA, CTT, MRITax
Professor
STATEMENT OF COMPREHENSIVE
INCOME
Comprehensive Income
Comprehensive income is the change in equity
during a period resulti ng from transacti ons and
other events, other than changes from
transacti ons with owners in their capacity as
owners.
Comprehensive Income
1. Components of Profi t or Loss
2. Components of Other Comprehensive Income
Profit or Loss
Profi t or loss is the total income less expenses,
excluding the components of other
comprehensive income.

In other words, this is the “bott om line” in the


traditi onal income statement.
Other Comprehensive Income
Comprises items of income and expense
including reclassifi cati on adjustments that are
not recognized in profi t or loss.
Other Comprehensive Income
Components:
1. Unrealized gain or loss on investment in
equity instruments measured at fair value
through other comprehensive income.
2. Gain or loss from translati ng the fi nancial
statements of a foreign operati on.
3. Revaluati on surplus during the year.
4. Unrealized gain or loss from derivati ve
contracts designated as cash fl ow hedge.
Other Comprehensive Income
Components:
5. Remeasurement of defi ned benefi t plan, such
as actuarial gain or loss, the diff erence between
actual return on plan assets and interest income
on fair value of plan assets, and change in the
eff ect of the asset ceiling.
6. Gain or loss att ributable to credit risk of a
fi nancial liability designated at fair value through
profi t or loss.
PAS 1, Par. 81, provides that an entity has
two options:
1. Two-statement approach
• An income statement showing the
components of profi t or loss
• A statement of comprehensive income
beginning with profi t or loss as shown in
income statement plus or minus the
components of other comprehensive
income.
PAS 1, Par. 81, provides that an entity has
two options:
2. Single statement approach

This is a combined statement showing the


components of P&L and OCI/L in a single
statement of comprehensive income.
Income Statement
An income statement is a formal statement
showing the fi nancial performance of an enti ty for
a period of ti me.

The fi nancial performance of an enti ty is primarily


measured in terms of the level of income earned
by the enti ty through the eff ecti ve and effi cient
uti lizati on of its resources.
Income Statement
Income statement is prepared “for a period of
ti me”
PAS 1, Par. 87
Mandates that an enti ty shall not present any
items of income and expense as extraordinary
items, in the income statement or statement of
comprehensive income or in the notes.
Items of Income and Expense requiring
disclosure:
a. Write-down of inventory to net realizable value and reversal
of such write-down
b. Write-down of property, plant and equipment to recoverable
amount and reversal of such write-down
c. Restructuring of the acti viti es of an enti ty and reversal of
any provision for the cost of restructuring
d. Disposal of an item of PPE
e. Disposal of investment
f. Disconti nued operati ons
g. Liti gati on sett lement
h. Other reversal of provision

You might also like