STATEMENT OF

COMPREHENSIVE INCOME
(SCI)
 The following lessons can be found in this module:
Lesson 1: Elements of SCI
Lesson 2: Preparation of SCI – Single-Step SCI for a Service
Business
 LEARNING OBJECTIVES
At the end of the lessons, the learners will:

1. identify the elements of the SCI and describe each of these items for
a service and merchandising business. (DepEd-MELC, DICES); and

2. prepare an SCI for a service business using the single step approach.
(DepEd-MELC, DICES)
LESSON 1:

Statement of Comprehensive Income (SCI)

• also known as income statement, reports the result of the

company’s operations for a specific period of time which is
called net income or net loss. It reports the amounts earned
and incurred for a specific accounting period.
 Statement of Comprehensive Income (SCI)

• Informs the stakeholders about the performance of the

business or the result of its operation, whether the business
generated profit or incurred loss during the period.
Statement of Comprehensive Income (SCI)

REVENUE > EXPENSE = PROFIT/NET INCOME

REVENUE < EXPENSE = LOSS/NET LOSS

 Statement of Comprehensive Income (SCI)

• Service Business
• Merchandising Business
 Statement of Comprehensive Income (SCI)

• Service Business
- service income or service revenue is used when it earned
money by providing services to their customers. It also incurs
expenses during its operation
 Elements Statement of Comprehensive Income
(SCI)

• Service companies
- have the most basic income statement of all the types of
companies. Since service-based companies do not sell a
product, the income statement will not contain cost of goods
sold. Therefore, the income statement will be a basic
breakdown of income and expenses
 Statement of Comprehensive Income (SCI)

• Merchandising Business
- earns money through selling goods or merchandise, and it is called
sales or sales revenue/income.
- expenses are divided into two categories:
 Cost of goods sold (COGS) is the total cost of merchandise
sold during the period;
 Operating expenses (OP) are expenses incurred in the process
of earning sales revenue that are deducted from gross profit in
the income statement.
 Elements Statement of Comprehensive Income
(SCI)

- Service Income- It is generally used to describe revenue derived

from rendering services. A more specific account name may be used
to identify the services rendered such as Rental Income, Professional
Fee, and Tuition Fee Revenue.

- Operating Expenses- These are expenses related to the operation

of the business, other than cost of sales of merchandising type of
business. These include salaries of employees, supplies, utilities
(electricity, telephone and water bills), gasoline expense,
representation, bad debts expense, depreciation and amortization
 REVENUES

• Is defined as fees earned from providing service and the

amounts of merchandise sold. Under the accrual basis of
accounting, revenues are recorded at the time when the
service have been rendered or when merchandise has been
delivered and sold to the customer.

• Must be recorded when earned even when not yet collected.

 REVENUES

• Sales Income
• Service Income
• Professional Fees
• Interest Income
• Rent Income
• Gain on sale of assets
 EXPENSES

• Is the reduction in the value of an asset as it is used to

generate revenue.
• Are costs of doing business. The business cannot operate to
earn revenue without consuming some assets, and this
consumption of assets refers to expenses.
• Under accrual basis of accounting, expenses should be
recorded when incurred even when not yet paid.
 EXPENSES

• Supplies Expense
• Salaries and Wage Expenses
• Insurance expense
• Taxes and license
• Doubtful accounts Expenses
• Depreciation expense
LESSON 2:

PREPARATION OF STATEMENT OF
COMPREHENSIVE INCOME – SINGLE-STEP

Parts of the Single Step SCI:

1. Heading (Name of the Company, Name of the Statement,
and Date of preparation)
2. Service Income/Revenue
3. Expenses
4. Net income / Net Loss
 PREPARATION OF STATEMENT OF
COMPREHENSIVE INCOME – SINGLE-STEP
 Directions: Prepare a Statement of Comprehensive Income- Single Step
Approach. Indicate your answers on another sheet of paper.

1. Prepare a single-step SCI using the following:

Revenues – P20,000
Rent expense – P3,000
Salaries expense – P4,000
Utilities expense – P2,000

Note: Provide your own business name as well as end of the

period date.