Memorandum –to-the- File: Comprehensive Income Date: June 5‚ 2013 RE: Question about the definition or example of comprehensive income. Facts: I have been contacted by my client who has asked the question about the definition or example of comprehensive income. In recent years‚ there is increased use of fair values for measuring assets and liabilities. Furthermore‚ possible reporting of gains and losses related to fair value has placed a strain on income reporting. Because fair values are continually
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Reporting Comprehensive Income FASB topic 220-10-45 outlines what is required for companies to report comprehensive income (CI). To do this‚ the entity must report CI either in a single continuous financial statement or in two separate but consecutive financial statements. If an entity prefers to report CI in a single continuous financial statement‚ then the entity must report the components in two sections entitled net income and other comprehensive income (OCI). For both net income‚ and OCI‚ a total
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National Income (Contd.) Methods used to measure National Income Calculating National Income There are various methods for calculating the national income such as production method‚ income method‚ expenditure method etc. Income Method: Different factors of production are paid for their productive services rendered to an organization. The various incomes that are included in these methods are wages‚ income of self-employed‚ interest‚ profit‚ dividend‚ rents‚ and surplus of public sector
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Tutorial – National Income Determination Question 01 Answer Parts (a) through (g) using the information in Figure 01 describing the Sri Lankan economy. Quantities are given in millions of Rupees. (a) Calculate gross private investment. (b) Calculate GDP. (c) Calculate gross national product (GNP). (d) Calculate net national product (NNP). (e) Calculate national income. (f) Calculate personal income. (g) Calculate disposable personal income. Figure 01 Gross private domestic investment 586.1 Compensation
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Class Discussion 1. Dartmouth Inc’s latest net income was $1‚250‚000‚ and it had 225‚000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? 2. Garcia Industries has sales of $200‚000 and accounts receivable of $18‚500‚ and it gives its customers 25 days to pay. The industry average DSO is 27 days‚ based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the
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Bose – Customer Experience Visit Assignment summary: You are to visit the specified store within the dates and times specified – please ensure you call the store in advance of your visit to check the store opening times. Visit the area of the store where the music systems are situated. Make an enquiry stating you are looking to purchase a new music system which you can wirelessly connect to for your home. What do I need to do? Enter the store and proceed to the music systems area. What do
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CHAPTER 2 BASIC CONCEPTS OF NATIONAL ACCOUNTS AGGREGATES Introduction 2.1 Various concepts of national income and related aggregates used in national accounts connote a particular meaning which may not necessarily conform to the one used in common parlance. It is‚ therefore‚ necessary that these are made familiar to the users to enable them to appreciate these in right perspective. It is with this objective that it has been considered necessary to refer to these in this publication. The basic
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Chapter 08 Business Income‚ Deductions‚ and Accounting Methods True / False Questions 1. The Internal Revenue Code authorizes deductions for trade or business activities if the expenditure is "ordinary and necessary". True False 2. Business activities are distinguished from personal activities in that business activities are motivated by the pursuit of profits. True False 3. The phase "ordinary and necessary" has been defined to mean that an expense must be essential and indispensable
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Analysis of Financial Statements After reading this chapter‚ students should be able to: Explain why ratio analysis is usually the first step in the analysis of a company’s financial statements. List the five groups of ratios‚ specify which ratios belong in each group‚ and explain what information each group gives us about the firm’s financial position. State what trend analysis is‚ and why it is important. Describe how the Du Pont chart is used‚ and how it may be modified to include
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would be not recording the $5.5 million of reciprocal advertising arrangement as revenue because according to the EITF 99-17 Par 2: “Revenues that include barter transactions which have no ultimate realization in cash and no overall effect on net income‚ the practice may lead to overstated
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