Statement of Comprehensive Income

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Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The statement of comprehensive income illustrates the financial performance and results of operations of a particular company or entity for a period of time.

Any equity changes that are not the consequence of transactions with shareholders are included in comprehensive income. It is comprised of two main components: net income and other comprehensive income.

According to International Financial Reporting Standards  since 1 January 2009 an entities make:

  • a Statement of comprehensive income (see the table below) or
  • two separate statements comprising:
  • an Income statement displaying components of profit or loss and
  • a Statement of comprehensive income that begins with profit or loss (bottom line of the income statement) and displays the items of other comprehensive income for the reporting period (IAS 1 p.81)

So the statement of comprehensive income aggregates income statement (profit and loss statement) and other comprehensive income which isn't reflected in profits and losses. "Total comprehensive income is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners." (IAS 1 p.7)
The statement of comprehensive income is one of the major financial statements used by accountants and business owners (the other major financial statements are the balance sheet (statement of financial position),  statement of changes in equity and statement of cash flows).

Net income is the traditional measure of a company's profitability and is calculated as revenues minus expenses. Other comprehensive income includes gains and losses that bypass the income statement and are instead recorded directly in equity. These gains and losses may include items such as unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and gains or losses from cash flow hedging activities.

Comprehensive income is a broader measure of a company's financial performance than net income alone, as it takes into account a wider range of factors that can impact a company's equity position.

IFRS do not prescribe the exact format of the Statement of comprehensive income but it can be obtained from IFRS Taxonomy. Just that official format is built into the ReadyRatios analytical software.

Statement of Comprehensive Income


 IAS (IFRS), p.
Profit (loss) from continuing operations 1p82f
Profit (loss) before tax IFRS 8p23, 8p28b
Gross profit 1p103
Revenue 1p82a, 18p35b, IFRS, 8p28a
Cost of sales 1p99
Other income 1p103, 1p102
Distribution costs 1p99
Administrative expense 1p99
Other expense 1p99
Other gains (losses) 1p103, 1p102
Profit (loss) from operating activities  
Difference between carrying amount of dividends payable and carrying amount of non-cash assets distributed IFRIC
Gains (losses) on net monetary position 9p29
Gain (loss) arising from derecognition of financial assets measured at amortised cost 1p82 aa
Difference between carrying amount of non-cash assets distributed and carrying amount of dividends payable IFRIC 17p5
Finance income IFRS 7 IG13
Finance costs 1p82b
Share of profit (loss) of associates and joint ventures accounted for using equity method 1p82c
Gains (losses) arising from difference between previous carrying amount and fair value of financial assets reclassified as measured at fair value Effective 2013-01-01 IAS 1.82 ca
Income tax expense (from continuing operations) 1p82d, 7p20
Profit (loss) from discontinued operations 1p82e-i
Other comprehensive income, net of tax, exchange differences on translation 1p91а, 1p82g
Other comprehensive income, net of tax, available-for-sale financial assets 1p91а, 1p82g
Other comprehensive income, net of tax, cash flow hedges 1p91а, 1p82g
Other comprehensive income, net of tax, hedges of net investments in foreign operations 1p91а, 1p82g
Other comprehensive income, net of tax, gains (losses) from investments in equity instruments 1p7d
Other comprehensive income, net of tax, gains (losses) on revaluation 1p91а, 1p82g
Other comprehensive income, net of tax, actuarial gains (losses) on defined benefit plans 19p120h, 1p91а, 1p82g
Income (expense) recognised in other comprehensive income relating to non-current assets or disposal group classified as held for sale IFRS 5p38

Here you can see the exact presentation of the statement of comprehensive income and all other reporting statements required by IFRS.

Historical Reference

Comprehensive income has been included in IFRS standards since the publication of IAS 1 (International Accounting Standard 1) in 1997. IAS 1 Presentation of Financial Statements requires companies to present a statement of comprehensive income, which includes all items of income and expense recognized in a period, both in profit or loss and in other comprehensive income.

In 2007, the IASB (International Accounting Standards Board) published a revised version of IAS 1 that included some changes to the presentation of comprehensive income. One of the key changes was to require companies to present a single statement of comprehensive income, rather than separate statements for profit or loss and other comprehensive income.

Since then, comprehensive income has been an important part of IFRS financial reporting, and is included in a number of other IFRS standards, including IAS 16 Property, Plant and Equipment, IAS 19 Employee Benefits, and IAS 36 Impairment of Assets. Companies that report under IFRS are required to provide a statement of comprehensive income in their financial statements to provide a more complete picture of their financial performance.

Comprehensive Income under US GAAP 

US GAAP also has the concept of comprehensive income, which is defined similarly to IFRS.

According to US GAAP, comprehensive income comprises both net income and other comprehensive income, as well as all changes in equity that arise from non-owner sources during the course of a period. Items include foreign currency translation adjustments, unrealized gains and losses on securities that are available for sale, gains and losses from cash flow hedges, and adjustments for pension and other postretirement benefit schemes are included under other comprehensive income.

Like IFRS, US GAAP requires companies to report comprehensive income in a statement that is separate from the traditional income statement. This statement is called the statement of comprehensive income under IFRS, and the statement of comprehensive income or statement of other comprehensive income under US GAAP.

Although the notion of comprehensive income is shared by both IFRS and US GAAP, there are some changes in how it is computed and reported under each set of standards. To guarantee that their financial statements meet the criteria of both IFRS and US GAAP, companies who operate under both standards may need to make modifications.

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