(a) What IFRS addresses reporting in the statement of comprehensive income? When

Question

(a) What IFRS addresses reporting in the statement of comprehensive income? When was it issued?

(b) Provide the definition of total comprehensive income.

(c) Explain the rationale for presenting additional line items, headings, and subtotals in the statement of comprehensive income.

(d) What items of income or expense may be presented either in the statement of comprehensive income or in the notes? Please Provide Citation Please Provide Citation Please Provide Citation Please Provide Citation Please Provide Citation

Explanation / Answer

Ans A) Under IFRS, A comprehensive statement is prepared by taking the revenue and all the finance costs and other costs and then calculating the P/L. It basically tells us that how a share equitty is actually changing and its relationship with revenue and cost, It includes data of two period, current period and just immediate period data. It was issued in September 2007.

Ans (b) It includes income generated from business, all the finance costs including int. that hits the P&L, all the comprehensive incomes such as Gain/Loss on Machine, etc, It basically presents the compresenive income of the firm including non recurring in nature , not ordinary items, discontinued business etc.It also shows that how much profit/Loss is allocated/.attributted to owners and non controlling interest, it shows Earning per share also.

Ans (C) It helps in better understanding of how the share holders equity are changing with regards to income/gain earned expenses/losses incurred and better reading of Incomes/ Expense, Gain/Losses, It becomes the basis/input of Cash flow statement as well. Users can easily distinguish if any abnormalities are found in the pattern of business conduct, It also heps users to gather all the necessary information at on eplace regarding Profit&Loss. It provides a complete pictiure of company earning capacity including income attributing to owner and non controlling interest.

Ans D) It includes revenue, Finance cost that includes interest expenses as well, Employee benefit expenses, Dep., amortization, tax exp. other exp. raw material consumed , income attributing to owner and non controlling interest.  it shows Earning per share also. Any loss/Gain unrealized incurred due to sale of any assets of the company are also shown as a notes in comprehensive statement. Any material litigation goin on that is also to be included through Notes., Discontinued operations are also shown through notes.

Referred IFRS module

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