Comprehensive Income or Statement of Comprehensive Income is a financial performance statement that listed down all profit and loss and other comprehensive income of entity for the period of time.
It usually prepares and presents monthly, quarterly, and annually on a comparative basis. That means if the company prepares the quarterly statement, its comparative figure should also contain a quarterly performance.
There are two main important types of income that contain in this statement that differentiate it from the income statement.
The first is to realize profit or loss which is the actual profit or loss for the period. And second is unrealized gain or loss which is the profit or loss as the result of accounting matters.
Statement of Comprehensive Income is the same as Statement of Profit or Loss and Other Comprehensive Income. The name was changed by IASB.
Noted: IASB had changed the name of Statement of Comprehensive Income to Statement of Profit and Loss and Other Comprehensive Income in June 2011.
Types of Comprehensive Income Statement:
Statement of Comprehensive Income (Statement of Profit and Loss and Others Comprehensive Income) could be prepared and presented into two different formats that allowed by IASB (ias 1 presentation of financial statements.
As the Statement of Comprehensive Income is another word of Statement of Profit and Loss and Others Comprehensive Income, the formats are also the same.
The following is the list of two types of the comprehensive income statement:
The single-step income statement
The first format that allows by IASB is single-step income statements. This kind of format is required reporting and present revenue and expenses into different sections regardless of realize or unrealized.
That means all kinds of revenues are recorded in the revenue sections no matter those revenues are realized or not.
For example, sales revenues, gain on interest income, and gain on revaluation are records in the revenue sections.
In the expenses section, the cost of goods sold, operating expenses, and loss of the exchange rate are recorded in the same sections.
Multiple-step income statement
The second format of Statement of Comprehensive Income is the multiple-step of the income statement. This format divided the statement into two different types. One is operation profit and the second one is non-operation profit.
The operating profit results from operation revenue fewer operating expenses. As an operation profit, non-operation profit results in non-operation revenue less non-operation expenses.
Statement of Comprehensive Income records both operating profit and loss and other comprehensive income which is not from normal operating activities.
You still can call this term in your daily works; however, the official term to be called and used in official financial statements is Statement of Profit and Loss and Other Comprehensive Income.