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Other comprehensive income what are they?


What should generally come under other comprehensive income? What is the basis for that? Can anyone explain with some examples?

asked Jul 12, 2013 in IAS 1 - Presentation of Financial Statements by Sephia Mag Level 2 Member (2,800 points)

1 Answer

0 votes
As per IAS 1, total comprehensive income for a particular period should include the profit & loss (i.e. the bottom line of the income statement) plus other comprehensive income.

Therefore a company is required to present a statement of comprehensive income in addition to income statement. However a company may present a single statement generally called "statement of comprehensive income" including both profit & loss & other comprehensive income and generally other comprehensive income part is presented after profit & loss.

As per IAS 1.88, all income & expenses should be included in the income statement however some IFRSs may require or allow some items to be excluded from profit & loss (i.e. from income statement) but to be included in the other comprehensive income.

Thus following may / must be included in other comprehensive income:

-actuarial gains and losses on defined benefit plans recognized as per with IAS 19
-gains and losses arising from translating the financial statements of a foreign operation (IAS 21)
-changes in revaluation surplus (IAS 16 and IAS 38)
-gains and losses on remeasuring available-for-sale financial assets (IAS 39)
- the effective portion of gains and losses on hedging instruments in a cash flow hedge (IAS 39).
answered Aug 28, 2013 by anonymous


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