DFS comprehensive income

Options
sunshine2010
sunshine2010 Registered Posts: 45 Regular contributor ⭐
Hi

i dont see this in many of the past papers- is this simply adding on or taking off hte gain or loss of a disposal ?

And i neccesarry adjusting for tax ?

Help ??
Thanks again
«1

Comments

  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
    Options
    Hi,

    Other comprehensive income (for the purposes of DFS) will include items that have been taken directly to reserves - such as revaluation gain on a building.

    You go all the way down to profit after tax (as normal) and underneath it starts:

    Other comprehensive income for the period
    Profit (loss) for the period............................................X
    Gain on property revaluation.........................................X
    Tax in respect of items in other comprehensive income......(X)
    Other comprehensive income net of tax..........................X
    Total comprehensive income for the period......................X

    Not a huge difference, but something you need to be familiar with prior to the exam.

    Regards
    Steve
  • sunshine2010
    sunshine2010 Registered Posts: 45 Regular contributor ⭐
    Options
    great

    Thanks Steve this is very useful

    I have did a few of these but was a while ago.
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
    Options
    Would this be linked to the Income Statement in the exam?
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Options
    Any chance someone can give an actual question I can practise as I can not see any in my osborne books that relate to this although I have read all above and more. I would really like to practise using other comprehensive income. thank you
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
    Options
    I'm in the same boat, I don't think there are any questions available.

    I'm hoping that if all the info is there on the proforma it'll be pretty straightforward.
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    I've never done any of them either!
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    jewels.p wrote: »
    I've never done any of them either!
    Same here!

    I'm wondering if it's worth it or that I just stick to staring at the layout in the hope it goes in my head.
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    Options
    I think I like your approach Rinske, I may use it myself!!!!
  • reddwarf
    reddwarf Registered Posts: 528 Epic contributor 🐘
    Options
    upped for info
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    I have just found a document in My AAT called

    "The Presentation of Financial Statements an illustrative Guide"

    This tells us about the Statement of Comprehensive Income. It is just a bit that is added on to the bottom of the Income Statement and all you do is include the Revaluation Amount to your total.

    Hope this puts all our minds at rest!
  • katie2620
    katie2620 Registered Posts: 5 New contributor 🐸
    Options
    Is it for information purposes only?
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    katie2620 wrote: »
    Is it for information purposes only?

    Not sure what you mean Katie?
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
    Options
    Tax in respect of items in other comprehensive income......(X) 1st
    Other comprehensive income net of tax..........................X 2nd
    Total comprehensive income for the period......................X 3rd


    I don't understand these three lines, would the third line be the 1st and 2nd added together?
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    Esme wrote: »
    Tax in respect of items in other comprehensive income......(X) 1st
    Other comprehensive income net of tax..........................X 2nd
    Total comprehensive income for the period......................X 3rd


    I don't understand these three lines, would the third line be the 1st and 2nd added together?

    I could be wrong here Esme but I wouldn't think we have to worry about all three lines. I think it would just be the Profit and the Revaluation we need to know
  • neuroticprincess
    neuroticprincess Registered Posts: 56 Regular contributor ⭐
    Options
    Just to be clear would you move the revaluation from the top (I usually include it in property, plant and equipment) ad put it at the bottom like this? Or have I completely misunderstood this? X
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    Hi,

    Revaluation is part of the non-current assets, so it should be added up, but the credit booking of the journal entry would now be in here instead of directly into the retained earnings.

    Journal:
    Debit Non current assets
    Credit retained earnings

    You still do the same, but list it separately in the statement of comprehensive income instead of adding it to the retained earnings on the SoFP.
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    Oh no. I thought the Statement of Comprehensive Income was in the Income Statement and we wouldnt have to do anything in the SOFP with it.

    Bloody hell this is more complicated than I thought!
  • Tinkerbell007
    Tinkerbell007 Registered Posts: 64 Regular contributor ⭐
    Options
    Jewels that's what I thought too! Didn't realise it was any more complicated than just a section added onto the IS!! :(
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    Rinske wrote: »
    Hi,

    Revaluation is part of the non-current assets, so it should be added up, but the credit booking of the journal entry would now be in here instead of directly into the retained earnings.

    Journal:
    Debit Non current assets
    Credit retained earnings

    You still do the same, but list it separately in the statement of comprehensive income instead of adding it to the retained earnings on the SoFP.

    Sorry Rinske not understanding this. So with Revaluation we normally add it to Non-Current Assets what do we do if we have had to do a Statement of Comprehensive Income deduct it from Retained Earnings in SOFP?
  • nabutt
    nabutt Registered Posts: 86 Regular contributor ⭐
    Options
    we will be given the proforma for the statement of comprehensive income of the last bit for revaluation ????
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    nabutt wrote: »
    we will be given the proforma for the statement of comprehensive income of the last bit for revaluation ????

    Yeah think so but what we are stressing about now is the fact that Rinske said we need to do an adjustment in the SOFP if we have done a Statement of Comprehensive Income!

    I thought it was easier than it apparently is!
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    Nono, you are getting worried over nothing now.

    You don't do anything extra as far as I know.

    The statement of comprehensive income is the bottom bit that's added to the income statement.

    All it does is it lists all other comprehensive income for the period.

    Now think about what you would normally do with a gain on property revaluation:
    You add it to the non-current assets as a debit.
    You add it to the retained earnings as a reserve.

    This is still the same.
    The only difference is that you now instead of blindly adding it to the retained earnings, you just write it in the statement of comprehensive income.

    Same effect, only difference is that you show the users of your statement where you got those figures from.

    Does that make sense?
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    You mean I have now turned into a nervous wreck for nothing! :lol:


    Dont you ever do that to me again Rinske. Where did you go? You posted that earlier then left us! lol
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    Yes sorry, still at work, for some reason they expect me to work in between reading the forums...

    I thought I did explain it right before, but clearly not!

    I'm sorry for sending you into a panic! That was most definitely not my intention! :blush:
  • nabutt
    nabutt Registered Posts: 86 Regular contributor ⭐
    Options
    Jewels I got a question for practice this comprehensive n SOFP and Statement of changes in equity do u want it i can email it to u
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    Rinske wrote: »
    Yes sorry, still at work, for some reason they expect me to work in between reading the forums...

    I thought I did explain it right before, but clearly not!

    I'm sorry for sending you into a panic! That was most definitely not my intention! :blush:

    I am for some strange reason meant to be working too but couldn't possibly do anything until Friday afternoon when exams are done! Good job I know the art of delegating!
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    Options
    Ha, my problem is that usually everything gets delegated to me!
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    Options
    nabutt wrote: »
    Jewels I got a question for practice this comprehensive n SOFP and Statement of changes in equity do u want it i can email it to u

    please

    tracy.askey@yahoo.co.uk

    thanks

    tracy
  • nabutt
    nabutt Registered Posts: 86 Regular contributor ⭐
    Options
    Done Tracy
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
    Options
    nabutt wrote: »
    Done Tracy

    I pm'd my email address to you did you get it?
Privacy Policy