Comprehensive Income
Comprehensive income is the change in equity of an enterprise during a period from transactions and other events from non-owner sources (i.e., excludes capital transactions).
Statement of Comprehensive Income - is a new financial statement requiring presentation with equal prominence as the balance sheet, income statement and statement of cash flows.
Presentation of comprehensive income and its components in a separate financial statement is required. The statement of comprehensive income includes net income plus other comprehensive income ("OCI"). The amounts recognized in OCI eventually must be reclassified to the income statement (in accordance with other CICA Handbook Sections). These reclassification adjustments should be disclosed separately. Examples of items included in other comprehensive income are:
- Exchange gains and losses arising from the translation of financial statements of a self-sustaining foreign operation
- Changes in fair value of available-for-sale financial assets
- Effective portion of the changes in fair value of cash flow hedging instruments
The OCI may be presented:
- Immediately below net income on the income statement
- In a separate statement that begins with net income; or
- In a statement of changes in equity Transition.
The Section 1530, Comprehensive Income is effective for annual periods beginning on or after October 1, 2006 for publicly accountable entities.