The FASB\'s concept of comprehensive income excludes transactions that involve t

Question

The FASB's concept of comprehensive income excludes transactions that involve the payment of dividends and other transactions affecting owners. requires that all transactions representing changes in asset and liability accounts must be shown on the income statement. allows items that are not necessarily under management's control, such as currency translation adjustments, to be shown as an appropriation of retained earnings has a primary drawback because it allows management considerable flexibility in determining the net income figure.

Explanation / Answer

C. allows item that are not necessarily under management's control , such as currency adjustements , to be shown as an appropriation of retained earnings

As comprehensive income statement provide the much bigger picture , so it also includes other item that has not been realised such as un realized holding gain or loss , foriegn current transaction gain or losses

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