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P&L Vs OCI

XYZ Corp reported net income of $30,000 for the year ended December 31, 2020. It also reported a foreign currency translation gain of $10,000 and an unrealized loss on financial assets at fair value of $8,000, resulting in total comprehensive income of $32,000. ABC Corp's statement of changes in equity shows an issuance of shares that increased share capital by $1,000,000 and reserves by $500,000, along with net income of $1,500,000 and an unrealized loss on financial assets of $100,000, resulting in ending balances as of December 31, 2020 of $6,000,000 in share capital, $2,

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133 views2 pages

P&L Vs OCI

XYZ Corp reported net income of $30,000 for the year ended December 31, 2020. It also reported a foreign currency translation gain of $10,000 and an unrealized loss on financial assets at fair value of $8,000, resulting in total comprehensive income of $32,000. ABC Corp's statement of changes in equity shows an issuance of shares that increased share capital by $1,000,000 and reserves by $500,000, along with net income of $1,500,000 and an unrealized loss on financial assets of $100,000, resulting in ending balances as of December 31, 2020 of $6,000,000 in share capital, $2,

Uploaded by

Rujean Salar Altejar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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XYZ CORP XYZ CORP

Statement of Comprehensive Income Statement of Comprehensive Incom


For the year ended Dec. 31, 2020 For the year ended Dec. 31, 2020

Sales 100,000 Net income


Cost of goods sold 60,000 Other comprehensive income (OCI):
Gross profit 40,000
Operating expenses 10,000
Net income = (P/L) 30,000 Comprehensive income
Other comprehensive income (OCI):
Foreign currency translation gain 10,000 ABC CORP
Unrealized loss on FA @ FV (8,000) 2,000 Statement of Changes in Equity
Comprehensive income 32,000 For the year ended Dec. 31, 2020

N.B. Balance - January 1


- P/L accounts are nominal accounts Issuance of ordinary shares
- P/L accounts are closed to R/E (10,000 sh par P100 @ P150)
- OCI accounts are real accounts Comprehensive income:
- OCI accounts carry beginning balance at the start of the year
- OCI accounts are not closed to R/E
- the method of accounting for the unrealized gain or losss Dividends
on financial assets at fair value depends on the business Appropriation for contingencies
model the entity follows in managing its investment Balances - December 31
XYZ CORP
Statement of Comprehensive Income
For the year ended Dec. 31, 2020

Net income 30,000


Other comprehensive income (OCI):
Foreign currency translation gain 10,000
Unrealized loss on FA @ FV (8,000) 2,000
Comprehensive income 32,000

ABC CORP
Statement of Changes in Equity
For the year ended Dec. 31, 2020
Retained
Share Capital Reserves Earnings
Balance - January 1 5,000,000 2,000,000 1,000,000
Issuance of ordinary shares 1,000,000 500,000
(10,000 sh par P100 @ P150)
Comprehensive income:
Net income 1,500,000
Unrealized loss on FA @ FV (100,000)
Dividends (400,000)
Appropriation for contingencies 200,000 (200,000)
Balances - December 31 6,000,000 2,600,000 1,900,000

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