RSM220H1 Lecture 5: 5 Income Statement October 10- 2017
Document Summary
Q#2 -> estimated that won"t lose the on-going lawsuit but ending up with m losses. adjust both liability and equity. Comprehensive income includes any non-sh transactions that causes a change in equity unrealized gains/losses on revaluation on pp&e / holding. Oci is closed to a bs account called accumulated oci. Intraperiod tax allocation income tax expense is calculated and presented separately. Earnings per share (eps) indicate dollars earned per common share how much revenue/return each share generates. Ni / dividends declare / correction of errors / accounting policy changes (accumulated accounts) a permanent account that carried over periods. = ob restated error correction discovered the error made several periods ago today e. g. suppose you recorded a litigation loss of . 5m as . 5m (2015), the error is found now (2016), the tax rate was 40% so in 2015. Ni (closed to re) -> overstated 0. 6m error correction.
