Statement of Comprehensive Income - YouTube

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clicking the bell ican friends today we have a topic with your statement of

comprehensive income we have an extract over here that has been taken of Colgate

there is consolidated statement of comprehensive income details that have

been mentioned the total comprehensive income including the non-controlling

interest data well we'll try and understand in this in the detail format

we all know you know about consolidated income statement and about the

consolidated statement of comprehensive income so what we note from the above

Colgate's reported on net income over here to 2,586 million in 2016 however

the total comprehensive income including the non-controlling interest was to

2,344 million in 2016 so does this exactly help so in this

article or in this Tutorial you will know the consolidated statement of

comprehensive income is and how it is useful to as you as an investor will

we'll begin with the same what is consolidated statement of comprehensive

income so to understand the consolidated statement of comprehensive income the

first we need to pay heed to opposite of comprehensive

so the opposite of the comprehensive income is narrow down income or income

from its what we call as main operations the Colgate extract you know this is a

snapshot of the consolidated income statement of Colgate this is this is a

snapshot and what we note here that hold its net income including the

non-controlling interest is $2,586 as a part as you can see over

here 2,586 million and we can see from the above income statement

that contains revenue and expenditure related to the main operation is the

business so what about those items that is again the losses that have been

excluded from the income state where do they get exactly adjusted so let's

understand this concept with the help of the basic statement of comprehensive

income exam a very basic one now over here as you can see the total assets is

standing at 1300 right other total assets and liability has to be equal and

it is standing at 1300 first let's say the inventory right down is from

$300 to $200 dollars so if the value of the inventory decreases from

$300 to $200 then the total assets amount in the

balance sheet will also decrease by $1200 right now how does this

total liability figures get it adjusted so the answer is quite simple to the

income statement through the retained earning retained earnings rights so the

inventory write down of 100 that is from $300 to $200 will follow

from the income statement okay so in this example what we have assumed that

you know the taxes is going to be zero and the above cases for the gains and

losses flow that flows from the income statement so let's now take a different

case where such gains or losses do not flow through the income statement now

let's say the marketable securities that is available for sale it decreases 200

now if the value of the available for sale

that is the marketable securities if it reduces from $200 $200 then the total

assets amount in the balance sheet will also decrease to $1200 however

the total liabilities ready will be still at 1300 we are taking this as the benchmark

for calculation over here and the accounting rule does not allow us to

adjust the unrealized loss on the available-for-sale securities from the

income statement insert the just it directly into the shareholders

equity section through accumulated other comprehensive income there would be two

takeaways over here first the gains and losses on such items are not allowed to

be to flow from the income statement and are included in the statement of the

comprehensive income and the other comprehensive income for the period gets

added to the accumulated income in the shareholders equity section now what's

gonna be the format for the statement of comprehensive income

well comprehensive income it connotes the details income detail income

statement where we also include income from the other sources along with income

from the main function of the business let me show you something this is our

what it looks like when we saw at the very beginning level right so from from

this above the consolidated statement of comprehensive income we have to consider

two primaries components first is the net income or loss from the income

statement of the company and other is the other comprehensive income that or

the other or comprehensive income net of taxes so here's a simple list of the

items at any that is included in the statement of the compressive income

first is the translation

adjustments now the foreign currency translation gains or losses they do not

flow from flow through the income statement therefore they are included in

the statement of the comprehensive income so what we were or what we saw

from there the cumulative foreign exchange translation adjustment over

here adjustment attributable to the non-controlling interest is $97 million

it is pre-tax and $125 million net of taxes second the pension funds pension and the

other benefits so following the pension related gains or losses they are

included in the statement of the comprehensive income like the pension

post a retirement benefit plans or gains or losses or the pension of the post

retirement benefit plans prior service prior service cost or credits basically

you can say that pension or post retirement plans transition assets or

obligation so in our scenario when we saw the

extract we note in the Colgate that the retirement plan and the other retirement

benefits adjustments were $168 million pre-tax this was the amount pre tax

and $109 million post tax okay then there is available for sale

securities the available for the sale securities are these securities that are

available for the sale literally and they have a readily available

marketplace so at the end of the each financial year you know companies need

to value available for sales occur and any gains or losses due to the change in

the valuation is not included in income sitting but are reflected in the

statement of comprehensive income the fourth is the cash flow hedges now for

unrealized gains and losses from the cash flow had just flow through the

statement of comprehensive income that is also part that is included in that

particular thing so as the things that you should know as an investor see even

after looking at the consolidated comprehensive income income statement

there are few things that you should consider as an investor first to fall

you will note of all no single document can tell you that you know whole whole

thing about a company so to be sure you need to get your hands on on the annual

report of the company the shareholders and the annual report

under 10k and the consolidated income and comprehensive income state so if you

appreciate the complexity and the technicalities of the finance you will

enjoy the detail approach through thoroughly by looking at all the documents

but if you are just starting in as investor it is better to learn from the

someone from someone or the higher someone who can help you out with this

particular state so that's it for this particular topic if you have learned and

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