Comprehensive Income

Overview

Comprehensive income is defined as the change in equity (i.e., net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It is important for accountants to be able to report and account for comprehensive income because the amounts help to reflect a company's true income during a specific time period. This is valuable information for businesses with a large amount of investments.

This course provides an overview of the accounting and reporting requirements with respect to comprehensive income as prescribed by Accounting Standards Codification (ASC) Topic 220. This includes a detailed discussion of the various components of other comprehensive income as well as those items that do not qualify for recognition in comprehensive income. Additionally, this course provides the respective presentation and disclosure and illustrative examples from actual U.S. Securities and Exchange Commission (SEC) filers.

Learning Objectives

Upon completion of this course, you will be able to:

  • recognize key information related to comprehensive income
  • differentiate between the one-statement and two-statement approach for presenting comprehensive income
  • identify required disclosures with respect to comprehensive income
  • recognize key information related to reclassification adjustments

Designed For

CPAs and other financial professionals who wish to study ASC 220 and the components of comprehensive income

Prerequisites

General knowledge of GAAP exposure to comprehensive income issues
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