what's technically part of the "income statement"?

  • Creator
    Topic
  • #1497033
    startupcfo
    Participant

    Jordan Co. had the following gains during the current period:

    Gain on disposal of business segment $500,000
    Foreign currency translation gain 100,000
    What amount of unusual or infrequently occurring items should be presented on Jordan’s income statement for the current period?

    I know that the 100K should show up in OCI. OCI is still part of the income statement right? The income statement isn’t just for net income and above?

    I also believe the 500K should show up is gain from a discontinued operation.

    My answer was $600K. But the program says the answer is ZERO. Why is that?

    AUD - 93
    BEC - 87
    FAR - 77
    REG - 77
    ------------
    Corporate finance leader

    BEC - 87 | 02/28
    REG - 70 | 06/10, REMATCH | 08/30
    AUD - XX | 09/10
    FAR - XX | 12/10

Viewing 3 replies - 1 through 3 (of 3 total)
  • Author
    Replies
  • #1497036
    ng3926a
    Participant

    OCI is not part of net income.

    NI + OCI = comprehensive income

    AUD: 74, 75

    BEC: 81

    FAR: 64, 66, 76

    REG: 84

    #1497102
    Spartans92
    Participant

    The call of the question is asking for unusual and infrequent aka extraordinary items. None of those meet the definition. FAR isn't my strongest suit either, as indicated by my scores. But I'm sure the given info are just to confuse you. Yes, OCI is in income statement after NI. Comprehensive income = NI + OCI. I def need to refresh.

    BEC - 76
    REG- 67, 85
    AUD-63, 74, 80!!
    FAR-65, 62, 57, 79

    3 down 1 more to go. BEC is on the Line 🙁

    BEC- PASS

    #1497136
    Namstut
    Participant

    You are correct in regards to where these items will show up on the Income Statement, however, none of these items fall under the category of Unusual or Infrequently Occurring.

    When the going gets tough, the tough get going.

    All Done!!!

    AUD 7/6/16 Passed
    BEC 9/3/16
    FAR TBD
    REG TBD

Viewing 3 replies - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.