Statement of Comprehensive Income

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 Included in 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.

Statement of Comprehensive Income for the year ended 31 March 2014
Net income 23,000
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.

Last modified July 16th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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