Wiley GAAP: Financial Statement Disclosure Manual. Joanne M. Flood

Чтение книги онлайн.

Читать онлайн книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood страница 38

Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood

Скачать книгу

combined statement of income and comprehensive income, or

       In two separate, but consecutive statements.(ASC 220‐10‐45‐1C)

Reporting Comprehensive Income
Single Continuous Statement of Net Income and Comprehensive Income Two Separate but Consecutive Statements
Show:Components of net incomeTotal net incomeComponents of other comprehensive incomeTotal of other comprehensive incomeTotal comprehensive income In the statement of net income show:Components of net incomeTotal of net incomeIn the statement of comprehensive income presented immediately after the statement of net income begin with net income and show:Components of other comprehensive incomeTotal of other comprehensive incomeTotal of comprehensive income
(ASC 220‐10‐45‐1A) (ASC 220‐10‐45‐1B and 45‐1C)

       Amount of net income and comprehensive income attributable to the parent.

       Amount of net income and comprehensive income attributable to the noncontrolling interest in a less‐than‐wholly‐owned subsidiary.(ASC 220‐10‐45‐5)

      The three items that are shown in the heading of an income statement are:

      1 The name of the entity whose results of operations is being presented.

      2 The title of the statement.

      3 The period of time covered by the statement.

      Entity Name The entity’s legal name should be used and supplemental information could be added to disclose the entity’s legal form as a corporation, partnership, sole proprietorship, or other form if that information is not apparent from the entity’s name.

      Statement Titles The use of the titles “Income Statement,” “Statement of Income and Comprehensive Income,” “Statement of Operations,” or “Statement of Earnings” denotes preparation in accordance with GAAP. If another comprehensive basis of accounting were used, such as the cash or income tax basis, the title of the statement would be modified accordingly. “Statement of Revenue and Expenses—Income Tax Basis” or “Statement of Revenue and Expenses—Modified Cash Basis” are examples of such titles.

      The category “other or miscellaneous expense” should contain, at maximum, an immaterial total amount of aggregated insignificant items. Once this total approaches a material amount of total expenses, some other aggregations with explanatory titles should be selected.

      There are two generally accepted formats for the presentation of income from continuing operations:

       Single‐step and

       Multiple‐step

      Single‐Step Format In the single‐step format, items are classified into two groups: revenues and expenses. The operating revenues and other revenues are itemized and summed to determine total revenues. The cost of goods sold, operating expenses, and other expenses are itemized and summed to determine total expenses. The total expenses (including income taxes) are deducted from the total revenues to arrive at income from continuing operations.

      1 Gross profit (margin)

      2 Operating income

      3 Income before income taxes

Скачать книгу