A Statement Of Comprehensive Income Essay
The statement of comprehensive income determines the entity 's financial performance in a certain accounting period. Under IAS 1 there are two main components of the statement of comprehensive income:
a) Profit or Loss for the period: This includes all the items which are either classified as an income or an expense for e.g. Revenue, COGS, Administrative expenses. b) Other comprehensive income: This includes the items which will be not be included in the profit and loss but will directly be identified under equity or reserves such as revaluation gain. One of the benefits of this component is, it helps to comprehend the changes in the fair value of assets. "Fair value is the amount at which the asset is purchased or sold between two knowledgeable and willing market participants" (KPMG, 2013).
In case of consolidation IAS 1 also requires this statement to provide the amount of profit or loss and comprehensive income divided among the NCI and the parent owners (Friedrich, 2007).
Statement of Changes In Equity
The statement of changes in equity identifies the changes in the owner 's equity in an accounting period. This is divided into changes in the shareholders funds in the organization and in the retained earnings from one period to next. This includes…