Comprehensive Income

Examples of Comprehensive Income in the following topics:

• Other Comprehensive Income

  • Accumulated Other Comprehensive Income (AOCI) is all the changes in equity other than transactions from owners and distributions to owners.
  • They are disclosed in the shareholder equity section of the balance sheet known as "accumulated other comprehensive income" .
  • The individual components of the balance can be presented in a separate statement of comprehensive income or a separate section for comprehensive income within the income statement.
  • Other comprehensive income can be reported in its own statement of comprehensive income or in a separate section within the income statement.
  • Summarize the purpose of the comprehensive income section on the financial statement

• Accounting Methodologies: Amortized Cost, Fair Value, and Equity

  • 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).

• Reporting of Financial Statement Analysis

  • an Income Statement and, separately, a Statement of Comprehensive Income, which reconciles Profit or Loss on the Income statement to total comprehensive income

• Defining the Income Statement

  • Income statement is a company's financial statement that indicates how the revenue is transformed into the net income.
  • 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 (cash or credit sales of products and services before expenses are taken out) is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or "bottom line").
  • Income statements should help investors and creditors determine the past financial performance of the enterprise, predict future performance, and assess the capability of the business to generate future revenue streams through the reporting of income and expenses.
  • Guidelines for statements of comprehensive income and income statements of business entities are formulated by the International Accounting Standards Board and numerous country-specific organizations, for example the FASB in the U.S.

• Income Security Policy and Policy Making

  • Income security policy is designed to provide a population with income at times when they are unable to care for themselves.
  • Income Security Policy is usually applied through various programs designed to provide a population with income at times when they are unable to care for themselves.
  • Income maintenance is based in a combination of five main types of program
  • The amount of support is enough to cover basic needs and eligibility is often subject to a comprehensive and complex assessment of an applicant's social and financial situation.

• Introduction to the Retained Earning Statement

  • 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.

• Preparation of the Income Statement

  • 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:

• Creating a Comprehensive Ad Campaign

• Reporting Fair Value

  • 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.

• Financial Statement Notes

  • 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.