How does the statement of comprehensive income differ from a traditional statement of financial performance?
A)It does not show a gross profit.
B)It only shows realised gains and losses.
C)It shows all realised and unrealised gains and losses.
D)It does not show financial expenses.

Question

Quizplus · Accepted Answer

The statement of comprehensive income shows not only realised gains and losses, but also unrealised gains and losses. This is different from a traditional statement of financial performance, which typically only shows realised gains and losses. The statement of comprehensive income also includes items such as foreign currency translation adjustments and changes in the fair value of available-for-sale financial assets. It does show financial expenses.

How Does the Statement of Comprehensive Income Differ from a Traditional