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Comprehensive income, changes in equity and the notes

FAR Chapter 2 · Area I · Blueprint I.A.3–4, 7

Net income is not the whole story. A few gains and losses skip the income statement and wait in equity, and the exam expects you to know exactly which ones. The Blueprint asks you to prepare the statement of comprehensive income and the statement of changes in equity from a trial balance, and to correct errors and omissions in the notes. These are quick marks once the short list of OCI items is memorized.

In this chapter

1. What comprehensive income is
2. The five OCI items
3. Presenting comprehensive income
4. Accumulated OCI and reclassification
5. The statement of changes in equity
6. The notes: policies, related parties and risks
7. Going concern: management's evaluation

This chapter has 7 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Purpose and structure of comprehensive income
• items in OCI
• statement of changes in equity
• correcting and checking note disclosures

Chapter 1: Balance sheet and income statement · Chapter 3: Statement of cash flows