Which of the following is true about an entity's choices for presenting comprehensive income?
A) An entity has only the choice between a statement of profit or loss (PL) or a statement beginning with PL and listing all OCI items.
B) An entity must choose between presenting a statement of comprehensive income or a profit/loss statement showing net income or a net loss.
C) An entity can present total comprehensive income either in a single statement or in two statements.
D) The accounting policy choice an entity selects is applied consistently from period to period and can never be changed.

Question

Quizplus · Accepted Answer

An entity can present total comprehensive income in one of two ways: in a single statement of comprehensive income that includes all components of profit or loss and other comprehensive income (OCI), or in two separate but consecutive statements where the first statement presents the components of profit or loss and the second statement presents the components of OCI. This flexibility allows entities to choose the presentation that best suits their financial reporting needs.

Which of the Following Is True About an Entity's Choices