Management and Organizational Studies 3360A/B Study Guide - Midterm Guide: Deferral, Comprehensive Income, Net Income
22 Jun 2017
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Document Summary
Income statement helps users: evaluate past performance and profitability, provide a basis for predicting future performance, help assess the risk of not achieving future net cash inflows, limitations of income statement. Can be correlated with cash flows from operations. Based on sound business strategy/model: presentation. Under aspe, held for sale asset retains original classification as current or non- current. 140,000: presents only two groupings before income before discontinued operations, revenues (includes gains, expenses (includes losses) Separate income tax section on income from continuing operations only: discontinued operations. Income/loss from operations: gain/loss from disposition, both reported net of taxes, other comprehensive income. Earnings per share is subject to dilution (reduction) if issue of additional shares is possible in the future. Iasb and fasb are preparing a converged standard on financial statement presentation : at the time of printing, the project was on hold.
