Question: Both U. S. GAAP and IFRS include the concept of comprehensive income. Comprehensive income is divided into net income and other comprehensive income. Read paragraphs

Both U. S. GAAP and IFRS include the concept of comprehensive income. Comprehensive income is divided into net income and other comprehensive income. Read paragraphs 58 through 67 in SFAS No. 130 and paragraph BC49 through BC54 in IAS 1. Also read the discussion of the dissenting opinions in SFAS No. 130.

Required

1. In theory, what four possible reporting methods for OCI could standard setters allow?

2. What are the pros and cons of these four possible methods of reporting OCI?

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Question 1 The four possibilities are Disclosed in the notes to the financial statements Included in the statement of stockholders equity Included in a single statement of financial performance that i... View full answer

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