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What is a Comprehensive Income?

Open uri20170510 32134 7ezpi6?1494421819 jaggu asked over 2 years ago

Hi Friends, I am Jaggu. I am preparing for CA Intermediate | CA IPCC exam. I want to know, What is a Comprehensive Income?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered about 2 years ago

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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Unrealized holding gains or losses on investments that are classified as available for sale Foreign currency translation gains or losses Pension plan gains or losses Pension prior service costs or credits It is acceptable to either report components of other comprehensive income net of related tax effects, or before related tax effects with a single aggregate income tax expense or benefit shown that relates to all of the other comprehensive income items.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Examples of other comprehensive income include: Unrealized gains/losses on available-for-sale investments Unrealized gains/losses on hedge/derivative financial instruments Foreign currency translation adjustments Unrealized gains/losses on postretirement benefit plans Basically, comprehensive income consists of all of the revenues, gains, expenses, and losses that caused stockholders' equity to change during the accounting period. (The corporation's sale or purchase of its capital stock and its declaration of dividends are not a component of comprehensive income. The stock transactions and dividends are reported as separate items in the statement of stockholders' equity.)

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> What is a Comprehensive Income **--COMPREHENSIVE INCOME** --Comprehensive income for a corporation is the combination of the following amounts which occurred during a specified period of time such as a year, quarter, month, etc.: Net income or net loss (which is reported on the income statement), plus --Other comprehensive income (if this is present, a statement of comprehensive income must be prepared) --Examples of other comprehensive income include: --Unrealized gains/losses on available-for-sale investments --Unrealized gains/losses on hedge/derivative financial instruments --Foreign currency translation adjustments --Unrealized gains/losses on postretirement benefit plans --Companies typically report comprehensive income in a separate statement from income resulting from owner changes in equity, but have the option of providing information in a single statement. Many firms shy away from the single statement approach because it mixes owner and nonowner activity, which can muddle the underlying information

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Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Jaggu, **COMPREHENSIVE INCOME** Comprehensive income for a corporation is the combination of the following amounts which occurred during a specified period of time such as a year, quarter, month, etc.: Net income or net loss (which is reported on the income statement), plus Other comprehensive income (if this is present, a statement of comprehensive income must be prepared) Examples of other comprehensive income include: - Unrealized gains/losses on available-for-sale investments - Unrealized gains/losses on hedge/derivative financial instruments - Foreign currency translation adjustments - Unrealized gains/losses on postretirement benefit plans Basically, comprehensive income consists of all of the revenues, gains, expenses, and losses that caused stockholders' equity to change during the accounting period. (The corporation's sale or purchase of its capital stock and its declaration of dividends are not a component of comprehensive income. The stock transactions and dividends are reported as separate items in the statement of stockholders' equity.) The amount of other comprehensive income for the period will be added to the accumulated other comprehensive income, which is a separate line within stockholders' equity on the end-of-the-period balance sheet. (The net income or net loss reported on the income statement will be added to retained earnings as usual.)

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered over 2 years ago

The change in a company's net assets from nonowner sources over a specified period of time. Comprehensive income is a statement of all income and expenses recognized during that period. The statement includes revenue, finance costs, tax expenses, discontinued operations, profit share and profit/loss. **Companies typically report comprehensive income in a separate statement from income resulting from owner changes in equity, but have the option of providing information in a single statement. Many firms shy away from the single statement approach because it mixes owner and nonowner activity, which can muddle the underlying information** Thanks

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that What is a Comprehensive Income? Let me informed that Other comprehensive income is those revenues, expenses, gains, and losses under both Generally Accepted Accounting Principles and International Financial Reporting Standards that are excluded from net income on the income statement. This means that they are instead listed after net income on the income statement. Revenues, expenses, gains and losses appear in other comprehensive income when they have not yet been realized. Something has been realized when the underlying transaction has been completed, such as when an investment is sold. Thus, if your company has invested in bonds, and the value of those bonds changes, you recognize the difference as a gain or loss in other comprehensive income. Once you sell the bonds, you have then realized the gain or loss associated with the bonds, and can then shift the gain or loss out of other comprehensive income and into a line item higher in the income statement, so that it is a part of net income. Examples of items that may be classified in other comprehensive income are: Unrealized holding gains or losses on investments that are classified as available for sale Foreign currency translation gains or losses Pension plan gains or losses Pension prior service costs or credits It is acceptable to either report components of other comprehensive income net of related tax effects, or before related tax effects with a single aggregate income tax expense or benefit shown that relates to all of the other comprehensive income items. Other comprehensive income is designed to give the reader of a company's financial statements a more comprehensive view of the financial status of the entity, though in practice it is possible that it introduces too much complexity to the income statement. Total comprehensive income is the combination of profit or loss and other comprehensive income Hope answer was helpful to you Regards, Arjun Pratap Singh

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