When a full set of general-purpose financial statements are presented, comprehensive income and its components should (D) be presented as part of the Income Statement or as a separate financial statement following the Income Statement.
<h3>Comprehensive income and its components:</h3>
- Comprehensive income and its components should be reported as part of the Income Statement or as a separate financial statement after the Income Statement when a full set of general-purpose financial statements is furnished.
- Net income (or loss) plus/minus other comprehensive income items, which may include, for a period: (a) a minimum pension liability adjustment, (b) any unrealized gain or loss on available-for-sale investments, (c) a foreign currency translation adjustment and gain/loss on the related hedge, and (d) the effective portion of cash flow hedges.
- For-profit entities are required by US GAAP to report comprehensive income and its components for a period (unless the entity has no other comprehensive income) in one of two statements:
- In the form of a separate "Statement of Comprehensive Income"
- Or when paired with the Income Statement, a "Statement of Net Income and Comprehensive Income" is produced.
Therefore, when a full set of general-purpose financial statements are presented, comprehensive income and its components should (D) be presented as part of the Income Statement or as a separate financial statement following the Income Statement.
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The correct question is given below:
When a full set of general-purpose financial statements are presented, comprehensive income and its components should:
A. Appear below income from continuing operations in the Income Statement.
B. Reported net of related income tax effect, in total and individually.
C. Appear in a supplemental schedule in the notes to the financial statements.
D. Be presented as part of the Income Statement or as a separate financial statement following the Income Statement.