Notes
on Comprehensive Income
FAS Statement No. 130
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Recent accounting pronouncements have created
a number of charges or credits that by-pass the traditional income statement.
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These items are now to be included in comprehensive
income.
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Comprehensive income includes all changes in
equity during a period except those resulting from investments by owners
and distributions to owners.
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Includes all items reported in net income plus
those items by-passing the income statement but affecting stockholders'
equity.
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Three ways of displaying comprehensive income:
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a second separate income statement
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a combined statement of income and comprehensive
income
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a part of the statement of stockholders equity
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No EPS required for comprehensive income
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Most companies will probably use the statement
of stockholders equity to report comprehensive income.
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Accumulated other comprehensive income is reported
in the stockholders equity section of the balance sheet.
exercise
on comprehensive income
review
questions
return
to Contemporary Accounting Issues