Selected condensed information (in millions) for Investments R Us Company, a public company, follows for the year ended November 30, 2017.
Income from investment in associate....................................................$4
Gain on fair value adjustments-FVTPL. ...............................................2
Gain on sale of land.......................................................................26
Income tax expense......................................................................781
Interest expense..........................................................................299
Interest revenue.............................................................................6
Dividend revenue...........................................................................3
Operating expenses...................................................................4,616
Loss on sale of FVTPL investments..................................................194
OCI-loss on fair value adjustment (net of tax) ....................................68
Other expenses............................................................................21
Revenues...............................................................................7,240
Instructions
(a) Prepare an income statement and separate statement of comprehensive income for the year ended November 30, 2017.
(b) Investments R Us Company had an opening balance in its Accumulated Other Comprehensive Loss account of $150 million. What is the ending balance it would report in the shareholders' equity section of its balance sheet at November 30, 2017?
TAKING IT FURTHER
Explain why a company may want to report gains and losses on fair value adjustments for its investments in other comprehensive income instead of including them in profit