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According to US GAAP, which of the following statements is true of comprehensive income?

A- Firms should report comprehensive income as a separate line item after net

income in the income statement.

B- Any realized or unrealized gain on an asset should be included as part of

comprehensive income, whereas realized or unrealized losses should be

excluded from comprehensive income.

C- Firms have the option of presenting the calculation of comprehensive income

either as part of an income statement or as a separate statement of

comprehensive income.

D- Comprehensive income can be presented as a part of the statement of

shareholders' equity.

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Question added by Deleted user
Date Posted: 2016/09/15
Haroon Shaukat
by Haroon Shaukat , Chief Accountant , Emeco Tourism LLC

C- Firms have the option of presenting the calculation of comprehensive income

either as part of an income statement or as a separate statement of

comprehensive income.

Muhammad Ali Mir
by Muhammad Ali Mir , Accountant General , Al Remaihi Interior Decoration Works LLC

Comprehensive income can be presented as a part of the statement of shareholder's equity  

Aslam Khan
by Aslam Khan , Senior Accounts Officer , Pakistan Software Export Board

option C is a right answer

Since To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), the FASB decided to eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity.

an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements

Deleted user
by Deleted user

According to US  GAAP Comprehensive income statement for reporting purposes can be either on the face of income statement or separately .

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