Characteristics of Statement of Comprehensive Income
In this article we would discuss some
important characteristics of Statement of comprehensive income. This statement
is divided into two parts or sections. First part shows the statement of
comprehensive income contains revenue & expenses and net income, while second
section statement of other comprehensive income shows the financial items which
are directly charged to equity.
Important Characteristics of Statement of Comprehensive Income
Some
important characteristics of statement of comprehensive income have been
briefly explained below;
1.
Comprehensive Income
Statement Items:
Statement
of comprehensive income shows the revenue & expenses and net income or
profit. Thus we can say that this part/section reflect the income from the
operations. Typically the following items will appear on the face of
comprehensive income.
a.
Revenue
b.
Finance Cost
c.
Tax expense
d.
Profit & loss
2.
Other Comprehensive Income
Items:
Other
comprehensive income section reflects/shows other income, which did not arise
from the normal course of activities. Some important item appear in this
section are listed below
a)
Gain/loss from foreign currency
translation.
b)
Changes in fair value of available for sale
asset.
c)
Revaluation of Assets.
d)
Loss/Gain from changes in fair value of financial
instruments.
3.
Total Comprehensive
Income
Total comprehensive incomes are calculated by
adding the income from operations and other comprehensive income. Items
appear on the face of comprehensive income are under
e.
Revenue
f.
Finance Cost
g.
Tax expense
h.
Profit & loss
i. Each item of other comprehensive
income.
j.
Total comprehensive income.
4.
Items on Face of comprehensive
Income or Notes
Following
items are to be shown either on face or in notes
a)
Material item of expense & income.
b)
Expenses analyses either by nature or
function.
Nature analyses of Expenses
a)
Material cost.
b)
Labor cost.
c)
Depreciation cost.
Function analyses of Expenses
a)
Distribution cost.
b)
Selling cost.
c)
Finance Cost.
5.
Performance for the Period
Statement
of comprehensive income shows the performance for the period. These periods may
be yearly, quarterly. It is important to remember that Statutory accounts are
prepared annually; however, management may also prepare monthly account.
