Examples of Comprehensive Income in the following topics:
-
- These securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (Other Comprehensive Income).
-
- Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses.
- These items are not part of net income, yet are important enough to be included in comprehensive income, giving the user a bigger, more comprehensive picture of the organization as a whole.Items included in comprehensive income, but not net income are reported under the accumulated other comprehensive income section of shareholder's equity.
- Ending Retained Earnings = Beginning Retained Earnings − Dividends Paid + Net Income.
-
- Income tax expense is the sum of the amount of tax payable to tax authorities in the current reporting period (current tax liabilities/ tax payable) and the amount of deferred tax liabilities (or assets).
- Certain items must be disclosed separately in the notes (or the statement of comprehensive income), if material, including:
-
- ABC records a journal entry debiting Dividends Receivable for USD 50,000 and crediting Dividend Income for USD 50,000.
- The Dividend Receivable is reported on the balance sheet under current assets and Dividend Income is reported on the income statement under a section for other income.
- ABC records a journal entry debiting Dividends Receivable for USD 50,000 and crediting Dividend Income for USD 50,000.
- The Dividend Receivable is reported on the balance sheet under current assets and Dividend Income is reported on the income statement under a section for other income.
- If the investment is an "available for sale" security, the balancing debit or credit goes to an unrealized loss or gain account reported in the other comprehensive income section of owner's equity on the balance sheet.
-
- While the Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Retained Earning contain all numeric information about the company, these numbers often require a better explanation.
- They also provide a more comprehensive assessment of a company's financial condition.
-
- Closing the revenue accounts—transferring the balances in the revenue accounts to a clearing account called Income Summary.
- Closing the Income Summary account—transferring the balance of the Income Summary account to the Retained Earnings account (also known as the capital account).
- After transferring all revenue and expense account balances to Income Summary, the balance in the Income Summary account represents the net income or net loss for the period.
- Closing or transferring the balance in the Income Summary account to the Retained Earnings account results in a zero balance in the Income Summary.
- It is not closed to the Income Summary because dividends have no effect on income or loss for the period.
-
- Income statements are commonly prepared in two formats: multiple-step and single-step.
- Income statements are commonly prepared in two formats: multiple-step and single-step.
-
-
-
- Income statement (also referred to as profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line").
- Earnings per Share = (Net Income - Preferred Dividends) / Shares of Stock Outstanding