Income statement#Requirements of IFRS

The statement of comprehensive income, also known by the English term statement of comprehensive income, a component of the consolidated or individual financial statements, in accordance with the International Financial Reporting Standards (IFRS ) ( IAS 1.10 ), United States Generally Accepted Accounting Principles (U.S. GAAP) or some other accounting standards be established. You should explain the emergence of comprehensive income for the reporting period of a group or company. The total score is the sum of the profit or loss for the period and other comprehensive income. The profit or loss for the period, the net income or loss corresponds to the financial statements, is the sum of all income statement income less the sum of all income statement expenses during the reporting period. Other comprehensive income, which is also referred to by the English term other comprehensive income is the sum of all earnings-neutral income less the sum of all losses recognized expenses during the reporting period. The German and Austrian Accounting Law do not know the statement of comprehensive income. Success here and its sources are shown in the profit and loss account.

Different display options

The representation of the formation of the overall result may in accordance with IFRSs done either in a single statement or in two separate statements. (IAS 1.10A ) In the first variant of this representation is described in a comprehensive statement of comprehensive income. First, the income and expenses are stated in it that lead to the one listed as an intermediate balance of the profit or loss for the period. This first part corresponds to the profit and loss account. After the interim balance the income and expenses are specified, leading to the second intermediate balance, the other comprehensive income. Finally, as the result in the account, the overall result. This variant is prefers the International Accounting Standards Board (IASB).

In the second representation variant of success is represented by a profit and loss statement (P & L ), and a condensed statement of comprehensive income. This variant is chosen in practice most often. The condensed statement of comprehensive income begins with the results of the income statement, the profit or loss for the period. Since its emergence is already explained in the income statement, the profit or loss for the period in the condensed statement of comprehensive income is only given in a lump sum. This is followed by a list of the losses recognized income and expenses that make up the other comprehensive income. The condensed statement of comprehensive income ends with the amount of the overall result.

The US-GAAP, whose terminology is slightly different from that of the IFRS, allow, besides the above-described display options, including an explanation of other comprehensive income in the statement of changes.

Under IFRS statement of comprehensive income can be placed in either accounts or report form, while U.S. GAAP require the report form. Both accounting systems write a minimum classification before ( IAS 1.82 ), but its contents are different in the two. IFRS accountants may choose between the representation according to the total cost and the cost of sales. The latter requires the additional specification of certain expenses, such as depreciation, in the Appendix. U.S. GAAP accountants, subject to the supervision of the United States Securities and Exchange Commission (SEC) must apply the cost of sales method.

Require IFRS (IAS 1:45 ) and U.S. GAAP that the form of presentation of comprehensive income is retained in the financial statements of the following periods. Only in the presence of defined exemptions may be waived in the presentation that the items and their contents, the changes must be explained.

Content

In the statement of comprehensive income, all income and expenses are summarized in items. Following the framework of IFRS ( F.4.25 ) is an income which " increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other not to contributions from shareholders is due. " The expense is defined analogously but with the opposite sign. The framework of U.S. GAAP contains similar definitions.

The income and expenses divide the IFRS for such from operating activities and other income ( gains ) and expenses ( losses ). Furthermore, revenues and expenses are divided according to whether they profit or loss affect the profit or loss for the period or in equity only affect other comprehensive income. The individual accounting standards to determine when income and expenses are classified as profit or loss or need. (IAS 1.7) In contrast to U.S. GAAP, IFRS prohibit the recognition of income and expenses under the " extraordinary income and expenses ". In two accounting systems, the results of discontinued operations are reported as a separate item in the statement of comprehensive income. ( IFRS 5.33 ) The definition of income and expenses following the overall result corresponds to the portion of the change in equity during a period, which is not attributable to transactions of the owners in their capacity as owners. In this sense, the statement of comprehensive income is linked to the balance sheet.