Statement of comprehensive income

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The statement of comprehensive income , even after the English word statement of comprehensive income called, is a component of the Group - or individual financial statements , according to the International Financial Reporting Standards (IFRS) ( IAS 1 .10), the United States Generally Accepted Accounting Principles (US- GAAP) or some other accounting standards. It is intended to explain the emergence of the overall result for the reporting period of a group or company. The total result is the sum of the profit or loss for the period and the other result. The profit or loss for the period , which in the financial statements of the net income equal to or loss is the sum of all income statement effects of income minus the sum of all income statement effects of expenses of the period. The other result , which is also referred to by the English term other comprehensive income , is the total of all income not recorded in the income statement less the total of all expenses not recorded in the income statement for the reporting period. German and Austrian accounting law do not know the statement of comprehensive income. Here the success and its sources are shown in the income statement .

Different display variants

According to the IFRS, the presentation of the creation of the overall result can be made either in one list or in two different lists. (IAS 1.10A) In the first variant, this is explained in a comprehensive statement of comprehensive income. In it, the income and expenses that lead to the profit or loss for the period listed as the interim balance are specified first. This first part corresponds to the profit and loss account. After the interim balance, the income and expenses that lead to the second interim balance, the other overall result, are specified. Finally, the total result is given as the result of the calculation. This variant is preferred by the International Accounting Standards Board (IASB).

In the second version of the presentation, the success is shown by an income statement (P&L) and a shortened statement of comprehensive income. This variant is chosen most often in practice. The abridged statement of comprehensive income begins with the result of the income statement, the profit or loss for the period. Since its occurrence is already explained in the income statement, the profit or loss for the period is only shown in one amount in the abridged statement of comprehensive income. This is followed by a list of the income and expenses not affecting the result that make up the other overall result. The abridged statement of comprehensive income ends with the amount of the comprehensive income.

US GAAP, the terminology of which differs slightly from that of IFRS, allows, in addition to the presentation variants described above, an explanation of the other result in the statement of changes in equity .

According to IFRS, the statement of comprehensive income can be prepared either in account or staggered form, while US GAAP stipulates the staggered form. Both accounting systems prescribe a minimum structure (IAS 1.82), the content of which, however, is different for both. IFRS accountants can choose between the total cost and cost of sales method . The latter requires the additional disclosure of certain expenses, such as depreciation , in the notes . US GAAP accountants who are regulated by the United States Securities and Exchange Commission (SEC) must use the cost of sales method.

IFRS (IAS 1.45) and US GAAP require that the form of presentation of the statement of comprehensive income is retained in the financial statements of the following periods. Only if there are defined exceptions can it be deviated from the form of presentation, the items and their content, whereby the changes must be explained.

content

In the statement of comprehensive income, all income and expenses are summarized in items. According to the framework of IFRS (F.4.25), an income is the "increase in economic benefit in the reporting period in the form of inflows or increases in assets or a decrease in debts, which lead to an increase in equity that is not attributable to a contribution of the Shareholder is due ". The effort is defined analogously, but with the opposite sign . The US GAAP framework contains similar definitions.

The IFRS subdivide income and expenses according to those from ordinary business activities and other income (gains) and expenses (losses). Furthermore, income and expenses are subdivided according to whether they affect profit or loss for the period or whether they only affect other comprehensive income. The individual accounting standards stipulate when income and expenses may or must be classified as not affecting earnings. (IAS 1.7) In contrast to US-GAAP, IFRS prohibits the disclosure of income and expenses under the item “extraordinary income and expenses”. In both accounting systems, the results from discontinued operations are shown as a separate item in the statement of comprehensive income. ( IFRS 5 .33) Following the definition of income and expenses, the total result corresponds to that part of the change in equity in a period that is not attributable to transactions by the owners in their function as shareholders. In this sense, the statement of comprehensive income is linked to the balance sheet .

literature

Individual evidence

  1. ↑ Bernhard Pellens, u. a .: International accounting, 2011, p. 177