What is Comprehensive Income?
Other Comprehensive Income (OCI) refers to various gains and losses that are not recognized in the current profit or loss in accordance with other accounting standards.
Other comprehensive income
- Business is preparing
- (1) The conditions belonging to other comprehensive income include the following:
- First, financial assets that are measured at fair value and whose changes are included in other comprehensive income. Also includes
- Example 1. Company A purchased company B's stock as an available-for-sale financial asset. On December 1, 2015, the cost at the time of purchase was 1 million yuan. On December 31, 2016, the fair value of the stock was 1.2 million. The impact of profit and loss in 2016, and prepare relevant accounting entries.
- The change in the stock is 120-100 = 200,000 yuan, but it is included in the "Other comprehensive income" of the equity account, and its impact on 2016 profit and loss = 0.
- Borrowings: Available-for-sale financial assets-changes in fair value 20
- Loans: Other comprehensive income 20
- Example 2. Company A's foreign currency business is converted at the spot exchange rate on the transaction day, and the exchange difference is calculated on a monthly basis. The purchase of 1,000 foreign stocks was counted as available-for-sale financial assets. On December 1, 2015, the purchase price was US $ 2 per share at the purchase date exchange rate of 1: 6.2; on December 31, 2015, the stock price was US $ 2.5 per share. , The spot exchange rate at that day was 1: 6.15.
- It is required to calculate the amount of changes in the fair value of the investment, exchange losses or gains, and other comprehensive income, and prepare relevant accounting entries.
- Changes in the fair value of this investment = 1000 * (2.5-2) * 6.15 = 3075 (yuan)
- Formation of exchange loss = 1000 * 2 * (6.15-6.2) =-100 (yuan)
- Other comprehensive income accounted amount = 1000 * 2.5 * 6.15-1000 * 2 * 6.2 = 2975
- Borrow: Available-for-sale financial assets 2975
- Loan: Other comprehensive income 2975