1. Provide the definition of comprehensive income.
The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following: * a. All components of net income
* b. All components of other comprehensive income.
2. Define classifications within net income; give examples. Classifications within net income
Items included in net income are displayed in various classifications. Those classifications can include income from continuing operations, discontinued operations, extraordinary items, and cumulative effects of changes in accounting principle. This Statement does not change those classifications or other requirements for reporting results of operations. (FAS 130-4-16)
3. Define classifications within other comprehensive income; give examples. Classifications within other comprehensive income
Items included in other comprehensive income shall be classified based on their nature. For example, under existing accounting standards, other comprehensive income shall be classified separately into foreign currency items, gains or losses associated with pension or other postretirement benefits, prior service costs or credits associated with pension or other postretirement benefits, transition assets or obligations associated with pension or other postretirement benefits, and unrealized gains and losses on certain investments in debt and equity securities. Additional classifications or additional items within current classifications may result from future accounting standards. (FAS 130-5-17)
4. What are reclassification adjustments?
Adjustments made to avoid double counting in comprehensive income items that are displayed as part...
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