Statement of

Comprehensive Income
Prepared by: Ivy Masilungan, MA
In the last lesson, we learned about…

• Statement of Financial Position / Balance Sheet

• Assets, Liabilities & Equity
• Current and Non-Current Assets
• Current and Non-Current Liabilities
• Account Form of Balance Sheet
• Report Form of Balance Sheet
• Solving problems sets about the balance sheet
Elements of Financial Statement

• Asset Statement of Financial

• Liabilities
Position
• Equity
• Income Statement of
• Expenses Comprehensive Income
Statement of Comprehensive Income

• Also known as income statement

• This statement contains the results of the company’s

operations for a specific period of time which is called
net income if it is a net positive while net loss if it’s a
net negative.
Statement of Comprehensive Income

• This reports the company’s financial performance

through presenting the entity’s revenues, gains,
expenses and losses for the period ended.
Revenues

Expenses

Net Income before tax

Income Tax Expense

Net Income
Temporary Accounts

• Also known as nominal accounts

• At the end of accounting period, balances under these

accounts are transferred to the capital account, thus
having only temporary amounts and resulting to zero
beginning balances at the beginning of the following year.
 Revenues, sales, utilities expense, supplies expense, salaries
expense, depreciation expense, interest expense
Income

• Increases in economic benefits during the accounting

period in the form of inflows, improvement of assets or
reduction of liabilities that result in increases in equity
Income

• Revenue
• Arises in ordinary regular activities

• Gains
• Does not regularly arise in ordinary regular activities
Expenses

• Decreases in economic benefits during the accounting

period in the form of outflows, reduction of assets or
incurrences of liabilities that result in decreases in
equity
Expenses

• Expenses
• Decreases in economic benefit such as salaries, rent,
depreciation

• Losses
• Do not arise in regular business operation like loss from
disaster, fire or sale of assets
Exercise: Prepare a Personal SCI

• Write down your monthly allowance (daily allowance x

number of days in a month)
• Write down the amount that you spend on food,
transportation, phone loads , etc. (make it monthly to
match your monthly allowance)
• Deduct the amount you spend from the amount of your
allowance
• Associate allowance with revenue and spending with
expense with the net amount as net income.
• Deadline: Tomorrow, 10:00 AM