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

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25,000 Less: Reclassification adjustment for gain included currently in net income (5,000) 20,000 Cash flow hedges Net derivative losses arising during the period (16,000) Less: Reclassification adjustment for losses included currently in net income 25,875 9,875 Defined benefit plans adjustment⁹ Prior service cost arising during period (3,900) (a) Net loss arising during period (2,900) (a) Less: Amortization of prior service cost included 300 (a) (6,500) with net period pension cost 40,375 Other comprehensive income, before tax (12,112) Income tax expense related to items of other comprehensive income 28,263 Other comprehensive income, net of tax Comprehensive income $111,513

      These AOCI components are components of net periodic pension cost (see pension note for additional details).

      If the “gross” approach illustrated above is used, it is also necessary to present in the notes to the financial statements details regarding the allocation of the tax effects to the several items included in other comprehensive income. An example of that note disclosure follows.

Example 5.6: Two Separate but Consecutive Statements of Income and Comprehensive Income—Net of Tax Presentation

Hypothetical Corporation Statement of Income for the Year Ended December 31, 20X1 ($000 omitted)
Revenues, (includes $12,000 accumulated other comprehensive income reclassifications for net gains in cash flow hedges)	$395,400
Expenses, (includes ($10,000) accumulated other comprehensive income reclassifications for net loss in cash flow hedges)	(251,220)
Other gains and losses	1,500
Income from operations before tax	145,680
Income tax expense	(62,430)
Net income	83,250
Earnings per share
Basic and diluted 0.73

Hypothetical Corporation Statement of Comprehensive Income for the Year Ended December 31, 20X1 ($000 omitted)
Net income		83,250
Other comprehensive income
Foreign currency translation adjustment, net of $5,100 tax		11,900
Unrealized gain on debt securities:
Unrealized holding gains arising during period, net of $7,500 tax	17,500
Less: Reclassification adjustment, net of $1,500 tax, for gain included currently in net income	(3,500)	14,000
Cash flow hedges
Net derivative losses arising during the period, net of $4,800 tax		(11,200)
Less: Reclassification adjustment for losses included currently in net income, net of $7,762 tax	18,113	6,913
Defined benefit pension plans: tax10
Prior service cost arising during period	(3,900) (a)
Net loss arising during period	(2,900) (a)
Less: Amortization of prior service cost included with net period pension cost	300 (a)
Less: Tax effects	1,950	(4,550)
Other comprehensive income		28,263
Comprehensive income		$111,513
(a) These AOCI components are components of Скачать книгу В начало < 38 39 40 41 42 43 44 45 46 47 > В конец e-mail: [email protected]