STATEMENT OF COMPREHENSIVE INCOME

Other comprehensive income

1. Unrealized gain or loss on equity investment measured at FVTOCI
2. Unrealized gain or loss on debt investment measured at FVTOCI
3. Gain or loss from translation of FS of a foreign operation
4. Revaluation surplus during the year
5. Unrealized gain or loss from derivative contracts designated as cash flow hedge
6. Remeasurement of defined benefit plan (including actual gain or loss)
7. Change in FV attributable to credit risk of a financial liability designated at FVTPL

Presentation of OCI
 PAS 1, p. 82A: SCI shall present line items classified by nature
 Line items for amounts of OCI shall be grouped as:
o OCI that will be reclassified subsequently to PL (2, 3, 5)
o OCI that will not be reclassified subsequently to PL (1, 4, 6, 7)

Presentation of comprehensive income

1. Two statements
2. Single statement

No more extraordinary items

 PAS 1, p.87: mandates that an entity shall not present any items of income and expense as
extraordinary items, either on the face of the income statement or statement of comprehensive
income or in the notes

Line items (minimum, PAS 1, p. 82)

 Revenue
 Gain and loss from the derecognition of FAAC (PFRS 9)
 Finance cost
 Share in income or loss of associate and joint venture accounted for using the equity method
 Income tax expense
 A single amount comprising discontinued operations
 Profit or loss for the period
 Total OCI
 Comprehensive income for the period being the total of PL and OCI

Following items shall be disclosed on the face of the IS and SCI:

 PL for the period attributable to NCI and owners of the parent
 Total CI for the period attributable to NCI and owners of the parent

Forms of IS
 PAS 1, p. 99: an entity shall present an analysis of expenses recognized in PL using a classification
based on either function of expense or their nature within the entity, whichever provides information
that is reliable and more relevant

Functional presentation
 Cost of goods sold method
 Disclose additional information on the nature of expenses, including depreciation, amortization and
employee benefit costs
Natural presentation
 Nature of expense method
 Expenses are aggregated according to their nature and not allocated among the various functions
within the entity

NOTES:
 PAS 1 does not prescribe any format
 p. 105 simply states that: because each method of presentation has merit for different types of
entities, management is required to select the presentation that is reliable and more relevant

Statement of retained earnings

 Shows the changes affecting directly the retained earnings of an entity and relates the income
statement to the SFP
 Important data affecting the RE that should be clearly disclosed in the statement of retained earnings
o Net income or loss for the period
o Effect of change in accounting policy
o Prior period errors
o Dividends declared and paid to shareholders
o Appropriation of retained earnings
 No longer a required basic statement, but is a part of the statement of changes in equity

Statement of changes in equity

 A basic statement that shows the movements in the elements or components of the SHE
 Shall present the following:
o Comprehensive income for the period
o Effects of changes in accounting policies and corrections of errors (for each component of
equity)
o Reconciliation between the carrying amount at the beginning and end of the period,
separately disclosing changes from:
 PL
 Each item of OCI
 Transactions with owners in their capacity as owners showing separately
contributions by and distributions to owners

Statement of cash flows

 A basic component of the financial statements
 Provides information about cash receipts, and cash payments during a period