FASB Accounting Standards Codification. Using the codification research system prepare responses to the following: Provide codificaiton references for your responses. In APA format, give the following response and list at least 3 reference:
1. Discuss how the authoritative literature addresses comprehensive income.
2. Define three classifications within net income and give an example of each.
3. Define three classificiations within other comprehensive income and give an example of each.
3 references in APA format.
FASB Accounting Standard Codification for Comprehensive Income
FASB Accounting Standards Codification (FASB ASC) provides knowledge about comprehensive income. FASB defines comprehensive income as the change in net assets of an organization during a particular period of time from the transactions of non owner sources (Monks, Lajoux & Lajoux, 2010). All changes in net assets (equity) during a period are included in comprehensive income except those incomes that incurs due to investment of owners. FASB divides comprehensive income into two parts first is net income and second is other comprehensive income. Other comprehensive income is the revenues that are included in comprehensive income but not included in net income under the generally accepted accounting principles (Nikolai, Bazley & Jones, 2009).
According to FASB, it is necessary for all the companies to prepare a report for its comprehensive income. But, if there is no other comprehensive income in a company then the company may avoid preparing the report of comprehensive income (Nikolai, Bazley & Jones, 2009). FASB provides three different alternatives in which companies can prepare their comprehensive income report. These are as follow:
? Prepare comprehensive income report in income statement
? Prepare separate statement for reporting comprehensive income
? Prepare report of comprehensive income in the statement of changes in stockholders' equity (Nikolai, Bazley & Jones, 2009).
A company can use any of these three alternatives for reporting the ...
Comprehensive income and classifications of net income is examined.