1. Comprehensive Income All changes in equity during a period except those resulting from investments by owners and distributions to owners. Other Comprehensive Income + Unrealized gains and losses on available-for-sale securities. Translation gains and losses on foreign currency. Plus others.. Reported in Stockholders’ Equity LO 8 Explain how to report other comprehensive income.

2. Comprehensive Income Review Gains and losses that bypass net income but affect stockholders' equity are referred to as a. comprehensive income. b. other comprehensive income. c. prior period income. d. unusual gains and losses. LO 8 Explain how to report other comprehensive income.

3. Comprehensive Income Three approaches to reporting Comprehensive Income (SFAS No. 130, June 1997): • A second separate income statement; • A combined income statement of comprehensive income; or • As part of the statement of stockholders’ equity LO 8 Explain how to report other comprehensive income.

4. Comprehensive Income Illustration 4-19 Two-Statement Format for Comprehensive Income LO 8 Explain how to report other comprehensive income.

5. Comprehensive Income Combined Income Statement LO 8 Explain how to report other comprehensive income.

6. Comprehensive Income Statement of Stockholders’ Equity (most common) Illustration 4-20 LO 8 Explain how to report other comprehensive income.

7. Comprehensive Income Balance Sheet Presentation Illustration 4-21 Regardless of the display format used, the accumulated other comprehensive income of $90,000 is reported in the stockholders’ equity section of the balance sheet. LO 8 Explain how to report other comprehensive income.

8. Comprehensive Income Review The FASB decided that the components of other comprehensive income must be displayed a. in a second separate income statement. b. in a combined income statement of comprehensive income. c. as a part of the statement of stockholders' equity. d. Any of these options is permissible. LO 8 Explain how to report other comprehensive income.