The Time Has Come to Report Comprehensive Income

PDF Cita Document Section options Testo completo - PDF Current viewAbstract/Dettagli Content area Abstract Traduci The Financial Accounting Standards Board defined comprehensive income in Statement of Financial Accounting Concepts 3. The board's notion of comprehensive income is simply another way of looking at the asset-liability approach to income. It is time to use this idea in the measurement of income. Financial statements need to reflect the asset-liability view of income because the traditional definition of income is too narrow. A statement of comprehensive income should be used to focus on the nonowner change in net assets in a period of time. Attention would be given to the overall change in net assets, and details would be provided to allow statement users to form their own judgments as to the significance of each source of change. Implementation problems remain. Categories within comprehensive income must be defined, and the appropriate earnings per share numbers must be identified.