Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 5ASC 220 COMPREHENSIVE INCOME

1. PERSPECTIVE AND ISSUES
   1. Subtopic
   2. Scope Exceptions
   3. Overview
2. DEFINITIONS OF TERMS
3. CONCEPTS, RULES, AND EXAMPLES
   1. Limitations of the Income Statement
   2. Other Comprehensive Income
   3. Format of Statement of Income and Comprehensive Income
   4. Reporting Comprehensive Income in Two Separate but Consecutive Statements of Income and Comprehensive Income

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. A second performance measure—comprehensive income—is a more inclusive notion of performance than net income. It includes all recognized changes in equity that occur during a period except those resulting from investments by owners and distributions to owners.

Because comprehensive income includes the effects on an entity of economic events largely outside of management's control, some have said that net income is a measure of management's performance and comprehensive income is a measure of entity performance.

DEFINITIONS ...