STATEMENT OF COMPREHENSIVE INCOME

ADVANTAGES
WHAT IS SCI? OF SINGLE-STEP
INCOME STATEMENTS
The Statement of Comprehensive Income provides a summary of a

company’s net assets over a given period of time. This statement

Easy to prepare.
highlights the adjustments on equity during a given timeframe.In other

words, SCI presents the success or failure of business operations of a Easy to understand.

company for given perion, in terms of profitablity.

ADVANTAGES
A Statement of Comprehensive Income contains two main things: the
OF MULTI - STEP
net income and other comprehensive income (OCI). The net income is
INCOME STATEMENTS
the result obtained by preparing an income statement. On the other

hand, OCI consists of all the other items that are excluded from the Offer Greater Detail.

income statement.
Report Gross Profit.

Report Operating

FORMATS OF SCI
Income.

SINGLE-STEP
Report Operating
A single-step income statement presents

the revenue, expenses and ultimately the SHOULD Im

Inco PREPARE
e

profit or loss generated by a business, A SINGLE-STEP OR

but it reports on this information by
MULTI-STEP INCOME
using just one equation to calculate
STATEMENT?
profits.The single-step income statement
Small businesses with a
offers a straightforward accounting of
simple operating structure,
the financial activity of your business.  including sole-proprietorships

The equation used in a single-step income and partnerships, can choose

between creating single-step

statement is:
Net Income = (Revenues + Gains) o rSm
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–(Expenses + Losses) s t a tS
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sE. -STEP OR

MULTI-STEP MULTI-STEP INCOME

Single-step income
STATEMENT?
A multi-step income statement reports statements are easier to

prepare and require less

much of the same general information
calculations. For many small
included in a single-step income
businesses, the single-step
statement, but it uses multiple equations.
income statement provides
The multi-step income statement breaks
all the details you’ll need to

down operating revenues and operating assess the financial health of

expenses versus non-operating revenues your company.

and non-operating expenses. The

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multi-step income statement uses three
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the net income:
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1. GROSS PROFIT = NET SALES
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2. OPERATING INCOME = GROSS and investors greater
are earnings retained by
PROFIT – OPERATING EXPENSES
financial detail about your
the corporation—that is, not
3. NET INCOME = OPERATING business, which can help them
paid to shareholders in the
INCOME + NON-OPERATING ITEMS assess its long-term viability.
form of dividends.