Exposure Draft on Comprehensive Income
The FASB and the IASB issued exposure drafts on FASC 220 – Comprehensive Income. The exposure draft proposes to eliminate two options for presenting Comprehensive Income and require a Statement of Comprehensive Income (SOCI) to replace the current income statement. EPS will still be based on net income. The exposure draft calls for retrospective application of the changes.
Entity
Statement of Income and Comprehensive
Income Year Ended December 31, 201X
Revenues $140,000
Expenses (25,000)
Other gains and losses 8,000
Gain on sale of securities 2,000
Income from operations before tax 125,000
Income tax expense (31,250)
Income before extraordinary item 93,750
Extraordinary item, net of tax (30,500)
Net income 63,250
Other comprehensive income, net of tax:
Foreign currency translation adjustments 8,000
Unrealized gains on securities:
Unrealized holding gains arising during period 13,000
Less: reclassification adjustment for gains
included in net income (1,500) 11,500
Defined benefit pension plans:
Prior Service Cost arising during period (1,600)
Net loss arising during period (1,000)
Less: amortization of prior service cost
included in net periodic pension cost 100 (2,500)
Other comprehensive income 17,000
Comprehensive income 80,250
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Unrealized Gain
On Securities
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Defined Benefit
Pension Plan
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Accumulated
Other Comprehensive
Income
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Beginning Balance
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$xxx
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$xxx
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$xxx
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Current Period Change
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xxx
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xxx
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xxx
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Ending Balance
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$xxx
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$xxx
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$xxx
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Linda is a CPA living in Southwestern Ohio, working as a research accountant for an investor-owned publicly traded utility company. She specializes in implementing new FASB and SEC requirements and FAS 133 derivative issues. In her role at the utility she has encountered many issues and written many memos, so send in your implementation and derivative issues and Linda will help figure out an answer.
