Coming Soon to an Income Statement Near You: Comprehensive Income

http://blogs.cfainstitute.org/marketintegrity/2012/04/13/coming-soon-to-an-income-statement-near-you-comprehensive-income/

So, did Bank of America have a profit or loss in 2011? Well, as Jonathan Weil of Bloomberg News reports, that depends on how you look at it. The answer is either a $1.4 billion profit or a $3.9 billion loss. Although both numbers are accurate, it takes a little more digging to identify the latter loss in the company’s financial reports. While the net income stares you down on the face of the income statement, the loss hides behind a curtain known as “comprehensive income” — buried in the company’s statement of changes in shareholder equity where it is easy to miss. But that is about to change. Read more of this post

Sandy Peters, CPA, CFA | April 13, 2012 at 8:55 am | Categories: FASB, Financial Reporting,Financial Statement Analysis, IASB | URL: http://wp.me/p2eBze-1nl

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