GENERALACCOUNTINGSECTIONcomprehensiveincome

1、general accounting section 1530 comprehensive incomegeneral accountingsection <>1530comprehensive incomepurpose and scope.0<>1? ? ?this section establishes standards for reporting and display of comprehensive income. it does not address issues of recognition or measurement for comprehens

2、ive income and its components.02? ? ?this section does not apply to not-for-profit organizations (see financial statement presentation by not-for-profit organizations, section 4400).definitionsdefinitions.03? ? ?the following terms are used in this section with the meanings specified:(a)? ? ?compreh

3、ensive income is the change in equity (net assets) of an enterprise during a period from transactions and other events and circumstances from non-owner sources. it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.(b)? ? ?oth

4、er comprehensive income comprises revenues, expenses, gains and losses that, in accordance with primary sources of gaap (see generally accepted accounting principles, section <>1<>100), are recognized in comprehensive income, but excluded from net income.presentationpresentation.04? ? ?&

5、#168; an enterprise should present comprehensive income and its components in a financial statement with the same prominence as other financial statements that constitute a complete set of financial statements. the statement should show:(a)? ? ?net income for the period;(b)? ? ?each component of rev

6、enue, expense, gain and loss that, in accordance with primary sources of gaap (see generally accepted accounting principles, section <>1<>100), is recognized in other comprehensive income, classified by nature; and(c)? ? ?the total of (a) and (b). oct. 2006.05? ? ?¨ an enterprise sh

7、ould disclose separately, either on the face of the statement or in the notes to the financial statements, adjustments to reclassify amounts of revenue, expense, gain and loss previously recognized in other comprehensive income to the income statement, in accordance with primary sources of gaap. oct

8、. 2006.06? ? ?¨ an enterprise should disclose the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, either on the face of the statement in which those components are presented or in the notes to the financi

9、al statements. oct. 2006.07? ? ?revenues, expenses, gains and losses recognized in a period are presented in the income statement unless a primary source of gaap requires otherwise. some primary sources of gaap require certain gains and losses, such as certain exchange gains and losses arising from

10、the translation of the financial statements of a self-sustaining foreign operation, to be included in comprehensive income but excluded from net income (i.e., to be included in other comprehensive income). it is important to understand the nature and amounts of those different types of revenues, exp

11、enses, gains and losses that are included in other comprehensive income. therefore, this section requires an enterprise to present information about changes during the period in each category of revenues, expenses, gains and losses that is of a different nature. this would, for example, result in ga

12、ins and losses arising from the translation of the financial statements of a self-sustaining foreign operation (see foreign currency translation, section <>165<>1) being classified separately from gains and losses arising from changes in either fair values of available-for-sale financial

13、 assets (see financial instruments? recognition and measurement, section 3855) or fair values of effective cash flow hedging instruments (see hedges, section 3865).08? ? ?the requirement in paragraph <>1530.04(c) may be met in a number of ways. for example, revenues, expenses, gains and losses

14、 presented in accordance with paragraph <>1530.04(b) may be presented immediately below the total for net income in the income statement. alternatively, all items required by paragraph <>1530.04 may be presented in a separate statement that begins with net income or in a statement of cha

15、nges in equity.09? ? ?this section does not require an enterprise to use the terms ;comprehensive income; or ;other comprehensive income; in its financial statements.transitional provisionstransitional provisions.<>10? ? ?except as specified in paragraph <>1530.<>10a, this section

16、applies to interim and annual financial statements relating to fiscal years beginning on or after october <>1, 2006. earlier adoption is permitted only as of the beginning of a fiscal year ending on or after december 3<>1, 2004. an enterprise that has previously issued interim financial

17、statements prepared in accordance with generally accepted accounting principles for a period within a particular fiscal year is precluded from adopting this section until the beginning of its next fiscal year. an enterprise adopting this section for a fiscal year beginning before october <>1,

18、2006 also adopts equity, section 325<>1, financial instruments? recognition and measurement, section 3855, and hedges, section 3865.<>10a? ? ?non-publicly accountable enterprises, as defined in differential reporting, paragraph <>1300.02, may defer application of this section to in

19、terim and annual financial statements relating to fiscal years beginning on or after october <>1, 2007. a non-publicly accountable enterprise that has previously issued interim financial statements prepared in accordance with generally accepted accounting principles for a period within a parti

20、cular fiscal year is precluded from adopting this section until the beginning of its next fiscal year. a non-publicly accountable enterprise adopting this section for a fiscal year beginning before october <>1, 2007 also adopts equity, section 325<>1, financial instruments? recognition a

21、nd measurement, section 3855, and hedges, section 3865.<>1<>1? ? ?when comparative statements are provided for earlier periods, those financial statements are restated to reflect application of this section only for the following items:(a)? ? ?foreign currency translation of self-sustain

22、ing foreign operations;(b)? ? ?appraisal increase credits;(c)? ? ?donations from non-owners, unless this is impractical.? ? ?as changes in balances for foreign currency translation of self-sustaining foreign operations and appraisal increase credits are separately disclosed in equity, it is not impr

23、actical to restate those changes as other comprehensive income items.<>12? ? ?an enterprise is encouraged, but not required, to apply paragraph <>1530.05, which requires presentation of reclassification adjustments, in comparative financial statements provided for earlier periods.illustr

24、ative exampleillustrative example? ? ?this material is illustrative only.? ? ?this example indicates how the accounting treatment specified in this section might be applied in particular situations. matters of principle relating to particular situations should be decided in the context of this secti

25、on.? ? ?this illustrative example is one possible format for a statement of comprehensive income. other formats may be equally appropriate, and different labels might be applied to describe the components displayed. an enterprise provides information in ways that are most understandable to investors

26、, creditors and other external users of financial statements.? ? ?for purposes of this illustration, it is assumed that all items are shown net of tax. details of tax expense or benefit are disclosed in a note to the financial statements, cross-referenced from the statement of comprehensive income.s

27、tatement of comprehensive incomefor the year ended december 3<>1 ($ thousands)20x220x<>1net income$? 65<>1$? 22other comprehensive income, net of tax:?unrealized gains and losses on translating financial statements of self-sustaining foreign operations (a)547627gains and losses on

28、hedges of unrealized foreign currency translation losses and gains(545)(6<>18)unrealized foreign currency translation gains and losses, net of hedging activities? 2? 9unrealized gains and losses on available-for-sale financial assets arising during the period<>1,689277reclassification ad

29、justment for gains and losses included in net income(3<>17)? 62change in unrealized gains and losses on available-for-sale financial assets<>1,372? 339gains and losses on derivatives designated as cash flow hedges<>1,723687gains and losses on derivatives designated as cash flow hed

30、ges in prior periods transferred to net income in the current period? (995)? (333)change in gains and losses on derivatives designated as cash flow hedges? 728? 354other comprehensive income? 2,<>102? 702comprehensive income$2,753$? 724?=(a)? ? ?it is assumed that there was no reduction in the

31、 net investment in a foreign operation. therefore, there is no reclassification adjustment.specific itemssection 325<>1equitypurpose and scope.0<>1? ? ?this section establishes standards for the presentation of equity and changes in equity during the reporting period. the requirements of

32、 this section are in addition to those in comprehensive income, section <>1530, share capital, section 3240, and reserves, section 3260.02? ? ?this section need not be applied by open-ended investment companies. (open-ended investment companies are described in accounting guideline acg-<>

33、;18, investment companies.)definitionsdefinitions.03? ? ?the following terms are used in this section with the meanings specified:(a)? ? ?equity is the residual interest in the assets of the enterprise after deducting all of its liabilities.(b)? ? ?contributed surplus comprises amounts paid in by eq

34、uityholders. contributed surplus in the form of surplus paid in by equityholders includes premiums on shares issued, any portion of the proceeds of issue of shares without par value not allocated to share capital, gain on forfeited shares, proceeds arising from shares donated by equityholders, credi

35、ts resulting from redemption or conversion of shares at less than the amount set up as share capital, and any other contribution by equityholders in excess of amounts allocated to share capital.(c)? ? ?retained earnings comprises the accumulated balance of income less losses arising from the operati

36、on of the business, after taking into account dividends, refundable taxes and other amounts that may properly be charged or credited thereto. when the accumulation is a negative figure, the single word ;deficit; is a suitable designation.(d)? ? ?accumulated other comprehensive income comprises the a

37、ccumulated balance of all components of other comprehensive income, being revenues, expenses, gains and losses that, in accordance with primary sources of gaap (see generally accepted accounting principles, section <>1<>100), are recognized in comprehensive income, but excluded from net

38、income (see comprehensive income, section <>1530).presentationpresentation.04? ? ?¨ an enterprise should present separately changes in equity for the period arising from each of the following:(a)? ? ?net income;(b)? ? ?other comprehensive income;(c)? ? ?other changes in retained earnings;

39、(d)? ? ?changes in contributed surplus;(e)? ? ?changes in share capital (see share capital, section 3240); and(f)? ? ?changes in reserves (see reserves, section 3260). oct. 2006.05? ? ?¨ an enterprise should present separately the following components of equity:(a)? ? ?retained earnings;(b)? ?

40、?accumulated other comprehensive income, showing each component of revenue, expense, gain and loss that, in accordance with primary sources of gaap (see generally accepted accounting principles, section <>1<>100), is recognized in other comprehensive income, categorized in the same compo

41、nents as required by comprehensive income, paragraph <>1530.04(b), and the total of those components at the end of the period;(c)? ? ?the total of (a) and (b);(d)? ? ?contributed surplus;(e)? ? ?share capital (see share capital, section 3240); and(f)? ? ?reserves (see reserves, section 3260).

42、oct. 2006.06? ? ?it is important to understand the nature and amounts of those different types of gains and losses that are included directly in equity. therefore, this section requires an enterprise to present a separate component of equity for each category of equity that is of a different nature.

43、 this would, for example, result in balances arising from the translation of the financial statements of a self-sustaining foreign operation (see foreign currency translation, section <>165<>1) being classified separately from balances arising from changes in either fair values of availa

44、ble-for-sale financial assets (see financial instruments? recognition and measurement, section 3855) or fair values of effective cash flow hedging instruments (see hedges, section 3865).07? ? ?in some cases, additional information concerning the segregation or availability of items of retained earni

45、ngs or contributed surplus to reflect contractual or statutory conditions or management policy may be presented. such information, when required, often may be presented most conveniently and suitably in notes to the financial statements (see capital disclosures, section <>1535).08? ? ?this sec

46、tion does not require an enterprise to use the term ;accumulated other comprehensive income; in its financial statements.09? ? ?¨ compliance with statutory requirements as to special designations of certain items of equity should not distort the basic classification. jan. <>1968 *.<>

47、;10? ? ?¨ when statutory designations deviate from accepted usage in financial statements or are otherwise inadequate, appropriate description or explanation should be added. jan. <>1968.<>1<>1? ? ?¨ when there is a condition restricting or affecting the distribution of r

48、etained earnings, the nature and extent thereof should be disclosed. jan. <>1968.<>12? ? ?¨ charges against contributed surplus should be restricted to instances where that disposition is clearly warranted by the circumstances, such as:(a)? ? ?a charge that is the direct opposite of

49、 a credit previously carried to contributed surplus (for example, see share capital, section 3240, regarding redemption or cancellation of shares and resale of acquired shares); or(b)? ? ?the elimination or reduction of a deficit, when made with the approval of the shareholders. jan. <>1968 *.

50、<>13? ? ?¨ if any deficit has been eliminated by reduction of share capital, reduction of contributed surplus, or other financial rearrangement, the description of retained earnings thereafter for at least three years should indicate the date of the rearrangement. jan. <>1968transit

51、ional provisionstransitional provisions.<>14? ? ?except as specified in paragraph 325<>1.<>14a, paragraphs 325<>1.0<>1-.08 apply to interim and annual financial statements relating to fiscal years beginning on or after october <>1, 2006. earlier adoption is permit

52、ted only as of the beginning of a fiscal year ending on or after december 3<>1, 2004. an enterprise that has previously issued interim financial statements prepared in accordance with generally accepted accounting principles for a period within a particular fiscal year is precluded from adopti

53、ng this section until the beginning of its next fiscal year. an enterprise adopting this section for a fiscal year beginning before october <>1, 2006 also adopts comprehensive income, section <>1530, financial instruments? recognition and measurement, section 3855, and hedges, section 38

54、65.<>14a? ? ?non-publicly accountable enterprises, as defined in differential reporting, paragraph <>1300.02, may defer application of paragraphs 325<>1.0<>1-.08 to interim and annual financial statements relating to fiscal years beginning on or after october <>1, 2007.

55、 a non-publicly accountable enterprise that has previously issued interim financial statements prepared in accordance with generally accepted accounting principles for a period within a particular fiscal year is precluded from adopting this section until the beginning of its next fiscal year. a non-

56、publicly accountable enterprise adopting this section for a fiscal year beginning before october <>1, 2007 also adopts comprehensive income, section <>1530, financial instruments? recognition and measurement, section 3855, and hedges, section 3865. this deferral does not apply to not-for

57、-profit organizations.<>15? ? ?when comparative statements are provided for earlier periods, those financial statements are restated to reflect application of this section only for the following items:(a)? ? ?foreign currency translation of self-sustaining foreign operations;(b)? ? ?appraisal increase credits;(c)? ? ?donations from non-owners, unless this is impractical.