Chapter 4 The Income Statement and Statement of Cash Flows. Comprehensive income. Statement of Financial Accounting Standards No. 130 Comprehensive income includes traditional net income and changes in equity from nonowner transactions Examples of nonowner transactions:
Inflows of resources resulting from providing goods or services to customers.
Outflows of resources incurred in generating revenues.
Gains and Losses
Increases or decreases in equity from peripheral or incidental transactions of an entity.
Income Tax Expense
Because of its importance and size, income tax expense is a separate item.
Revenues & Gains
Expenses & LossesIncome Statement (Single-Step)
Non- operating ItemsIncome Statement (Multiple-Step)
Income Tax Expense must be associated with each component of income that causes it.
Show Income Tax Expense related to Income from Continuing Operations.
Report effects of Discontinued Operations, Extraordinary Items, NET OF INCOME TAXES.