Joe Schreiner, controller for On Time Clock Company Inc., recently prepared the company's income statement and statement of changes in equity for 2017. Schreiner believes that the statements are a fair presentation of the company's financial progress during the current period, but he also admits that he has not examined any recent professional pronouncements on accounting.

Instructions
(a) Assume that On Time Clock Company follows IFRS. Assume that investments are accounted for as FV-OCI investments with gains/losses recycled through net income. Prepare a statement of comprehensive income showing expenses by function. Ignore calculation of EPS.
(b) Prepare the retained earnings and accumulated other comprehensive income portion of the statement of changes in equity. Assume an opening balance of $120,000 in accumulated other comprehensive income.

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ON TIME CLOCK COMPANY INC Income Statement For the Year Ended December 31, 2017 Sales revenues Less: Sales returns and allowances Net sales revenue Cost of goods sold $377,852 16,320 361,532 $50,235 Inventory, January 1, 2017 Purchases Less: Purchase discounts Cost of goods available for sale Inventory, December 31, 2017 Cost of goods sold $192,143 3,142 189,001 239,236 41,124 Gross proft Selling expenses Administrative expenses Income before income tax Other revenues and gains 198,112 163,420 73,992 89,428 41,850 32,142 Unrealized gain on FV-oci 36,000 40,000 165,428 56,900 $108,528 investments Dividend revenue Income tax Net income ON TIME CLOCK COMPANY INC Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2017 $216,000 Retained earnings, January 1, 2017 Add Net income for 2017 Gain on sale of long-term investments $108,528 31,400 $139,928 Deduct: Loss on expropriation Correction of mathematical error (net of tax) 13,000 17,186 (30,186) 109,742 $325,742 Retained earnings, December 31, 2017