comprehensive income
comprehensive income is a statement where we record all changes in equity during a financial year.it includes all changes in equity during a period except those resulting from owners.it is measured based on per-share basis to capture the effects.there is a general formula to calculate comprehensive income,which is shown below.
Shareholder's equity
-Dividend paid
+shares issued
-Share buyback
+comprehensive income
=shareholders equity
by using this formula you get to calculate the comprehensive income.
Debt security
a debt security is a financial instrument that's issued by a company or institution and sold to an investor with an agreement to pay back the face value and interest.and it is based on a maturity date.
basic debt instrument are government bond,certificate of deposit(c d),preferred stock .
also,debt security have a level of safety simply because they ensure that the principal amount safety.
Non-controlling interest
non controlling is the portion of equity ownership in a subsidiary not attributable to the parent company.a non-controlling is greater than 50% and less than 100%.and it is recorded in the consolidated statement.it is recorded in the shareholder's equity section of the parent company balance sheet.
A S U 2018-02
the fab issued this to provide entities an option to reclassify certain "standard tax effects"resulting from the recent U.S tax reform from accumulated other comprehensive income to retained earnings.it is mainly regarding the tax reclassification.
it might be effective but it may be confusing to financial statement users,and might need accounting or taxation knowledge to understand that.
Disclosure of extra-ordinary event
an extraordinary item is an accounting term used to describe expenses that are infrequent,unusual and significant in size.and it must be disclosed in the statement of accounts under disclosure.this is done for a better understanding of the item in the accounts by the user.it is effective for the statement because it helps the user to identify the item in accounts.
A S U 2014-09
it comes under revenue from contracts with customers. revenue is an important number to users of financial statements in assessing an entity's financial performance and position.and a contact is an agreement between two parties,which creates enforceable rights and obligation.
Cash equivalents
cash equivalents are investments securities that are meant for short-term investing,they have high credit quality and are highly liquid.
Working capital
working capital,also known as net working capital,is the difference between a company's current assets,such as cash, account receivable.a company need working capital for it's smooth operation of the organisation.
Current liabilities
current liabilities are a company's short-term financial obligations that's due within one-year or within a normal operation cycle.for example:tax payable,payable etc
Example of other liability
other liability record small transaction/liability.
includes miscellaneous debt and obligation,accrued expenses,sales taxes payable.
marketable security disclosure
disclosure includes :
redeemable year
market rate
acquire date
sold price
disclosure of inventory
the main disclosure are:
raw material.
work-in-progress.
finished goods
manufacturing supplies .
method of valuation
all of this must be disclosed.
Chapter 4 Codification: Access the FASB Codification through RIA checkpoint. Review Comprehensive Income. Define the following:...