Comprehensive income can be disclosed in various formats. Which of the following is an acceptable format for disclosing comprehensive income? I. At the bottom of the income statement, continue from net income and add other comprehensive income to arrive at comprehensive income for the year. II. In a separate statement, start with net income and add other comprehensive income to arrive at comprehensive income for the year. III. In the statement of stockholders’ equity, net income is adjusted for other comprehensive income to arrive at comprehensive income for the year. IV. After retained earnings in the stockholders’ equity section of the statement of financial position, start with net income and add other comprehensive income to arrive at comprehensive income for the year.
Comprehensive income can be disclosed in various formats. Which of the following is an acceptable format for disclosing comprehensive income? I. At the bottom of the income statement, continue from net income and add other comprehensive income to arrive at comprehensive income for the year. II. In a separate statement, start with net income and add other comprehensive income to arrive at comprehensive income for the year. III. In the statement of stockholders’ equity, net income is adjusted for other comprehensive income to arrive at comprehensive income for the year. IV. After retained earnings in the stockholders’ equity section of the statement of financial position, start with net income and add other comprehensive income to arrive at comprehensive income for the year.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 26E: Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income...
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Comprehensive income can be disclosed in various formats. Which of the following is an acceptable format for disclosing comprehensive income?
I. | At the bottom of the income statement, continue from net income and add other comprehensive income to arrive at comprehensive income for the year. | |
II. | In a separate statement, start with net income and add other comprehensive income to arrive at comprehensive income for the year. | |
III. | In the statement of |
|
IV. | After |
Expert Solution
Step 1
Comprehensive income:
The sum of regular and other comprehensive income is referred to as comprehensive income. The comprehensive income provides a more clear picture regarding the company's earnings and revenues.
Unrealized gains or losses from the following listed below are included in other comprehensive income:
- Derivative financial instruments
- Cash flow hedges
- Foreign currency transactions
- Debt securities
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