Professional research : FASB Codification Essay

822 Words Feb 10th, 2014 4 Pages
Problem2# Professional research
Acct2241

(a) What authoritative literature addresses comprehensive income? When was issued?
The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities.
Statement of Financial Accounting Standards No. 130
Reporting Comprehensive Income
Issued: June 1997

(b) Provide the definition of comprehensive income
Comprehensive income is defined in Concepts
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This Statement does not change those classifications or other requirements for reporting results of operations.

(d) Define classifications within other comprehensive income and give example.
Other comprehensive income definition: Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income.
Items included in other comprehensive income shall be classified based on their nature. For example, under existing accounting standards, other comprehensive income shall be classified separately into foreign currency items, minimum pension liability adjustments, and unrealized gains and losses on certain investments in debt and equity securities. Additional classifications or additional items within current classifications may result from future accounting standards.

(e) What are reclassification adjustments?
Adjustments shall be made to avoid double counting in comprehensive income items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods. For example, gains on investment securities that were realized and included in net income of the current period that also had been included in other comprehensive income as unrealized holding gains in the period in which they…