Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

5   ASC 220 COMPREHENSIVE INCOME

Perspective and Issues

Subtopic

Scope Exceptions

Overview

Technical Alert

Definitions of Terms

Concepts, Rules, and Examples

Limitations of the Income Statement

Other Comprehensive Income

Format of Statements of Income and Comprehensive Income

Example of Single Statement of Income and Comprehensive Income “Net of Tax” Presentation

Example of Single Statement of Income and Comprehensive Income “Gross of Tax” Presentation

Example: Note X: Income Taxes

Reporting Comprehensive Income in Two Separate but Consecutive Statements of Income and Comprehensive Income

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

PERSPECTIVE AND ISSUES

Subtopic

ASC 220, Comprehensive Income, consists of one topic:

• ASC 220-10, Overall, which provides guidance on the reporting, presentation, and disclosure of comprehensive income.

Scope Exceptions

Per ASC 220-10-15-4, the ASC 220 does not apply to the following entities:

1. Those that do not have any items of comprehensive income
2. Those not-for-profit entities that are required to follow the guidance in ASC 958-205.

Overview

In financial reporting, performance is primarily measured by net income and its components, which are provided in the income statement. During the 1990s, a second performance measure was introduced—comprehensive income—which is a more inclusive notion of performance than net income. It includes all recognized changes in equity that occur during ...