Statement of Other comprehensive income (SOCI)

Statement of income (PL) and Statement of Other comprehensive income (SOCI)

Cmprehensive income is a more all-encompassing view of changes in shareholders' equity, including not only net income but also all other changes in equity that do not arise from transactions with owners. Comprehensive income therefore includes net income and other comprehensive income (OCI). Both net income and OCI accumulate in shareholders' equity in the balance sheet, but in different accounts. While net income accumulates in retained earnings, OCI accumulates in accumulated other comprehensive income (AOCI).

Entities currently have a choice and can present profit or loss and other comprehensive income in either:

(a) a single statement of comprehensive income; or

(b) two statements: a statement displaying components of profit or loss (an income

statement), and a second statement beginning with profit or loss and displaying the

components of OCI (a statement ofother comprehensive income).

IASB proposes to require entities:

to present a statement showing as two separate sections:

i. profit or loss; and

ii. all items of ‘other comprehensive income’ (OCI); and

to present separately:

i. those items of OCI that might be recycled subsequently; and

ii. those items of OCI that will not be recycled subsequently.