FINANCIAL ACCOUNTING AND REPORTING IIILEARNING DIARY(SEMI-FINALS)

The lesson we discussed for Financial Accounting and Reporting III semi finals was all about the Statement of Comprehensive Income and Statement of Changes in Equity. During the discussions we learned that:

Main purpose of the Statement of Comprehensive Income is to provide more comprehensive information on financial performance of an entity.

Statement of Comprehensive Income is composed of Profit or Loss that is shown in the Income Statement and the Other Comprehensive Income items which are:

Statement of Comprehensive Income can be presented by: Two statements meaning there is separated document for Income statement and Statement of Comprehensive Income Single statement the Income Statement and Statement of Comprehensive income is combined; the bottom line in the Income statement is the first line item in the Statement of Comprehensive Income

Statement of changes in equity provides information about the movements in the elements/components of the shareholders equity. And these elements for Corporation are: Share Capital Share Premium Donated capital Subscriptions Treasury Shares OCI items Retained Earnings

We also learned different transactions prior to those specific elements that will increase or decrease their amount such as: Issuance of shares @par, above par, fully paid subscriptions, distribution of stock dividend payable , etc. Declaration of dividends, realization of OCI, loss on retirement issuance, change in accounting policy, correction of errors, etc.

The Statement of Changes in Equity in a Partnership is almost the same format with Sole proprietorship but there is additional investments and partners account recorded and the income is distributed according to the agreement