t*******r
发帖数: 309 | 1 做贝壳时有一道题, net cumulative effect of a change in accounting principle
没有算进当年的Other comprehensive income.
我理解是这个net cumulative effect不是要调整retained earnings吗? 为什么不算
OCI? Comprehensive income includes all changes to Equity aside from changes
in ownership. 我以为RE的变化也算在OCI. 求解惑.
Palmyra Co. has net income of $11,000, a positive $1,000 net cumulative
effect of a change in accounting principle, a $3,000
unrealized loss on available-for-sale securities, a positive $2,000 foreign
currency translation adjustment, and a $6,000
increase in its common stock. What amount is Palmyra's comprehensive income?
a. $4,000
b. $17,000
c. $11,000
d. $10,000
Explanation
Choice "d" is correct. Palmyra's comprehensive income is $10,000, which is
calculated as net income of $11,000 less the
$3,000 unrealized loss on available-for-sale securities plus the positive $2
,000 foreign currency translation adjustment.
Choice "a" is incorrect. Items not included in the calculation of Palmyra's
comprehensive income will be the $1,000 net
cumulative effect of a change in accounting principle and the $6,000
increase in common stock. These are not recognized as
adjustments to net income in the calculation of comprehensive income. | s********h
发帖数: 2190 | 2 The cumulative effect is disclosed net of tax and presented as the last line
item before net income.
In other words, cumulative effect is part of net income. | BL
发帖数: 26 | 3 Comprehensive Income = NI + OCI
That year OCI = (3,000) + 2,000
The 1,000 net cumulative effect is not part of OCI. | t*******r
发帖数: 309 | 4 谢谢!
line
【在 s********h 的大作中提到】
: The cumulative effect is disclosed net of tax and presented as the last line
: item before net income.
: In other words, cumulative effect is part of net income.
| t*******r
发帖数: 309 | 5 谢谢啦
【在 BL 的大作中提到】
: Comprehensive Income = NI + OCI
: That year OCI = (3,000) + 2,000
: The 1,000 net cumulative effect is not part of OCI.
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