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

6   ASC 225 INCOME STATEMENT

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

Recognition and Measurement

Revenues

Expenses

Gains and losses

Format of Statements of Income and Comprehensive Income

Income from Continuing Operations

Example of a single-step format for income from continuing operations

Example of a multiple-step format for income from continuing operations

Examples of the format for presentation of various income statement items

ASC 225-20, Extraordinary and Unusual Items

Unusual nature

Infrequency of occurrence

Items specifically included or excluded from extraordinary items

Presentation

Example of the income statement presentation for extraordinary items

Statement of Income and Retained Earnings

Example of a statement of changes in equity

Pro Forma Earnings

ASC 225-30, Business Interruption Insurance

PERSPECTIVE AND ISSUES

Subtopics

ASC, Income Statement, contains three subtopics:

• ASC 220-10, Overall, which provides general income statement guidance and on the structure of the Topic.
• ASC 220-20, Extraordinary Items, which addresses the classification, presentation and disclosure of extraordinary events and transactions and the presentation and disclosure of unusual and infrequently occurring items that do not meet the extraordinary criteria.
• ASC 220-30, Business Interruption Insurance, which provides presentation and disclosure requirements for business interruption insurance.

The three subtopics ...