Question

What are the two formats that companies can use to present their Statement of Comprehensive Income?

Answer 1

There are two types of formats that companies can use to present their Statement of comprehensive income,

1. One statement approach format - Under this type of format, all revenues and expenses are reported and then net profit or loss is derived. And then components of comprehensive revenue or loss is stated to calculate comprehensive income or loss.

2. Two statement approach format - As the name suggests, two statement are prepared under this approach. Firstly, a normal income statement is prepared, in which normal profit or loss is calculated, and then statement of comprehensive income is prepared, in which comprehensive income or loss is calculated.