Income Statement or Statement of comprehensive Income

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pirate
pirate Registered Posts: 469 Dedicated contributor 🦉
I have seen the term statement of comprehensive Income around as well as Statement of Income
does anyone know which is the correct one and which one should we use in DFS?

Will we be penalised if we use the wrong one

many thanks

Karen

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  • angharadmai
    angharadmai Registered Posts: 41 Regular contributor ⭐
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    It was called the Income Statement under the Companies Act 1985 but is now called the Statement of Comprehensive Income under the Companies Act 2006. My course book still use the term Income Statement as they have not been updated so this may be the case with you too.

    Also, the Balance Sheet is now called the Statement of Financial Position.

    Angharad
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
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    Thanks Angharad

    my books is the latest to the 2010 stadards and has all the new terms in it.
    I have got Income Statement on it and in the June 2010 exam it mentioned Income Statement but then was looking at an article and notice Statement of Comprehensive Income
    Alll very confusing, strange that my book is using the wrong terms

    K
  • Marga
    Marga Registered Posts: 981 Epic contributor 🐘
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    Hi, if i am not misktaken

    Income Statement:
    Continuing operations
    Revenue to Profit for the period from continuing operations
    Discontinued operations
    Loss for the period from discontinued operations to Profit for the period attibutable to equity holders

    Statement of other comprehensive income
    Profit for the year
    Other comprehensive income
    Gain/losson property revaluation
    Total comprehensive income for the year
  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
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    Hi,

    Just to clarify that the new terminology (statement of financial position etc) was due to the International Accounting Standards Board (IASB) revising IAS 1 'Presentation of Financial Statements' in 2007.

    The AAT only recently started to incorporate the new terminology into their examinations so some tuition material might still contain the old terms. I strongly advise all students to use their correct terminology in the exams!

    Kind regards
    Steve
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
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    Thanks everyone

    so in an exam if they ask for a Statement of Income you only go as far as Profit/Loss attributable to Equity
    If they ask for a SofCI then you add in the rest even if there are no revaluations or other gains in the period.
  • Marga
    Marga Registered Posts: 981 Epic contributor 🐘
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    pirate wrote: »
    Thanks everyone

    so in an exam if they ask for a Statement of Income you only go as far as Profit/Loss attributable to Equity
    If they ask for a SofCI then you add in the rest even if there are no revaluations or other gains in the period.

    thats what i would do yes, would leave the gain /loss of revaluation as --- but at least that would show them you know what actually is needed on the SofCI
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
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    Hi guys

    sorry to revive this again but I have got myself really confused
    I have read that on the exam under the new QCF qualification, from the June 2010 exam onwards- we have to produce a single "all-inclusive" statement of comprehensive income rather than an statement of income and a seperate statement of comprehensive income that was required under the standards before the new QCF.

    This is really confusing to me.
    I am studying under the old standards so am taking a paper based exam. My book (although for the June 2010 Exam) does not mention anywhere the Statement of Comprehensive Income at all.
    I think (from the posts above) that I understand what is in a statement of comprehensive income but I am confused about what will be required on the paper based exam for Dec 2010.
    I am struggling to study the statement of comprehsive income as I have absolutely no examples whatsoever in my book
    the osbourne websites shows this
    http://www.osbornebooks.co.uk/limited_company_accounts_ias_tutorial_2nd_editi2
    to show whats required for each exam and it doenst mention the statement of comprehensive income but instead the statement of income and expense.

    I do understand that they have changed and why but I seem to have a different outline everywhere I look

    Is there a definite statement anywhere which explains what we are definitely expected to write on the Dec 2010 paper based paper.

    many thanks and sorry for bring this up again
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