OTHER COMPREHENSIVE INCOME

RECLASSIFIED SUBSEQ. TO P/L RECLASSIFIED TO RETAINED EARNINGS

Gain/loss from foreign translation of financial Unrealized gain/loss on equity investment
statements measured @ FVOCI
Unrealized gain/loss on derivative contracts Change in revaluation surplus or revaluation
(cash flow hedge) surplus during the year

Unrealized gain/loss on debt investment Remeasurement of defined benefit plan

(measured @ FVOCI)
Gain/loss attributable to credit risk of
financial liability (designated @ FVPL)

COMPONENTS OF STATEMENT OF CHANGES IN EQUITY

1. Comprehensive income
2. Effects of changes in accounting policies + correction of errors
3. Reconciliation between carrying amount at beginning and end of period, separately
disclosing changes from:
a. Profit/loss
b. Each item of OCI
c. Transactions with owners in their capacity as owners showing separately
contributions by and distributions to owners

STATEMENT OF RETAINED EARNINGS

1. Net income/loss
a. Net income is added
b. Net loss is deducted
2. Prior period errors – adjustment of beginning balance of retained earnings
a. Net income understated = error added
b. Net income overstated = error deducted
3. Dividends declared and paid
4. Effect of change in accounting policy – adjustment of beginning balance of retained
earnings
a. Net income of prior period is understated = effect added
b. Net income of prior period is overstated = effect is deducted
5. Appropriate of retained earnings – appropriation amount is deducted from
unappropriated balance
a. Legal requirement (e.g. treasury shares)
b. Contractual requirement (e.g. bond redemption)
c. Entity policy (appropriation for contingencies)