The Statement of Comprehensive Income
The statement of comprehensive income is one of the main financial statements.
The purpose of the statement is to show all changes in equity other than those resulting from investments by and distributions to the owners of the business.
Owner transactions are those such as share issues and dividends and are not part of the statement of comprehensive income. Non owner transactions are included in the statement, and are separated into items which pass through the income statement, represented by the net income of the business, and items which do not go through the income statement referred to as other comprehensive income.
|Changes in equity|
|Owner transactions||Non Owner transactions|
|Statement of comprehensive income|
|Net income||Other comprehensive income|
Statement of Comprehensive Income Format
A typical layout for a statement of comprehensive income for a company is shown in the example below.
|Currency translation adjustment||-2,000|
|Gains on revaluation of available for sale securities||17,000|
|Actuarial losses on post retirement benefit plans||-3,000|
|Other comprehensive income||12,000|
|Total comprehensive income||35,000|
The statement starts with the net income representing all the transactions which have passed through the income statement. The remaining lines are transactions which have not passed through the income statement, and which combined total to other comprehensive income. As the total comprehensive income results in a change in equity, the total (or its components) also forms part of the Statement of Changes in Equity.
As a further example, the annual report for Apple shows a typical consolidated statement of comprehensive income.