【導(dǎo)讀】2.Prepareasingle-stepinestatement.3.Prepareamultiple-stepinestatement.measuredreliably.methodsemployed.judgment.songoing. Sales. Feerevenue. Interestrevenue. Dividendrevenue. Rentrevenue. songoing. Costofgoodssold. Depreciation. Interestexpense. Rentexpense. Salaryexpense. write-offsofassets.LO2Prepareasingle-stepinestatement.

　　

【正文】 Decrease ? Net loss ? Dividends ? Change in accounting principles ? Error corrections Retained Earnings Statement Special Reporting Issues 450 W o o d s, I n c.St a t e me n t o f R e t a i n e d Ea rn i n g sF o r t h e Ye a r En d e d D e ce mb e r 3 1 , 2 0 1 2Ba l a n ce , Ja n u a ry 1 1 , 0 5 0 , 0 0 0$ N e t i n co me 3 6 0 , 0 0 0 D i v i d e n d s (3 0 0 , 0 0 0 ) Ba l a n ce , D e ce mb e r 3 1 1 , 1 1 0 , 0 0 0$ Before issuing the report for the year ended December 31, 2020, you discover a $50,000 error ( of tax) that caused 2020 inventory to be overstated (overstated inventory caused COGS to be lower and thus ine to be higher in 2020). Would this discovery have any impact on the reporting of the Statement of Retained Earnings for 2020? Special Reporting Issues LO 7 Prepare a retained earnings statement. 451 W o o d s, I n c.St a t e me n t o f R e t a i n e d Ea rn i n g sF o r t h e Ye a r En d e d D e ce mb e r 3 1 , 2 0 1 2Ba l a n ce , Ja n u a ry 1 1 , 0 5 0 , 0 0 0$ Pri o r p e ri o d a d j u st me n t e rro r co rre ct i o n (5 0 , 0 0 0 ) Ba l a n ce , Ja n u a ry 1 (re st a t e d ) 1 , 0 0 0 , 0 0 0 N e t i n co me 3 6 0 , 0 0 0 D i v i d e n d s (3 0 0 , 0 0 0 ) Ba l a n ce , D e ce mb e r 3 1 1 , 0 6 0 , 0 0 0$ Special Reporting Issues LO 7 Prepare a retained earnings statement. 452 Restrictions on Retained Earnings Disclosed ? In notes to the financial statements. ? As Appropriated Retained Earnings. LO 7 Prepare a retained earnings statement. Special Reporting Issues 453 All changes in equity during a period except those resulting from investments by owners and distributions to owners. Includes: ? all revenues and gains, expenses and losses reported in ine, and ? all gains and losses that bypass ine but affect stockholders? equity. Special Reporting Issues LO 8 Explain how to report other prehensive ine. Comprehensive Ine 454 Special Reporting Issues I n c o m e S t a t e m e n t ( i n t h o u s a n d s )S a l e s 2 8 5 , 0 0 0$ C o s t o f g o o d s s o l d 1 4 9 , 0 0 0 G r o s s p r o f i t 1 3 6 , 0 0 0 O p e r a t i n g e x p e n s e s :S e l l i n g e x p e n s e s 1 0 , 0 0 0 A d m i n i s t r a t i v e e x p e n s e s 4 3 , 0 0 0 T o t a l o p e r a t i n g e x p e n s e 5 3 , 0 0 0 I n c o m e f r o m o p e r a t i o n s 8 3 , 0 0 0 O t h e r r e v e n u e ( e x p e n s e ) :I n t e r e s t r e v e n u e 1 7 , 0 0 0 I n t e r e s t e x p e n s e ( 2 1 , 0 0 0 ) T o t a l o t h e r ( 4 , 0 0 0 ) I n c o m e b e f o r e t a x e s 7 9 , 0 0 0 I n c o m e t a x e x p e n s e 2 4 , 0 0 0 N e t i n c o m e 5 5 , 0 0 0$ Other Comprehensive Ine ? Unrealized gains and losses on availableforsale securities. ? Translation gains and losses on foreign currency. ? Plus others + Reported in Stockholders? Equity LO 8 Explain how to report other prehensive ine. Comprehensive Ine 455 Review Gains and losses that bypass ine but affect stockholders39。 equity are referred to as a. prehensive ine. b. other prehensive ine. c. prior period ine. d. unusual gains and losses. Special Reporting Issues LO 8 Explain how to report other prehensive ine. 456 Companies must display the ponents of other prehensive ine in one of three ways: 1. A second separate ine statement。 2. A bined ine statement of prehensive ine。 or 3. As part of the statement of stockholders? equity Special Reporting Issues LO 8 Explain how to report other prehensive ine. 457 Special Reporting Issues LO 8 Illustration 419 Comprehensive Ine Second ine statement 458 Special Reporting Issues LO 8 Comprehensive Ine Combined statement V . G i l l I n c .Com b i n e d S ta te m e n t o f Com p r e h e n s i v e I n c o m eF o r t h e Y e a r E n d e d De c e m b e r 3 1 , 2 0 1 2S a l e s r e v e n u e 8 0 0 ,0 0 0$ Cos t o f g o o d s s o l d 6 0 0 ,0 0 0 G r o s s p r o fi t 2 0 0 ,0 0 0 O p e r a ti n g e x p e n s e s 9 0 ,0 0 0 Net i n c o m e 1 1 0 ,0 0 0 Unr e a l i z e d h o l d i n g g a i n , n e t o f ta x 3 0 ,0 0 0 Com p r e h e n s i v e i n c o m e 1 4 0 ,0 0 0$ 459 Special Reporting Issues LO 8 Explain how to report other prehensive ine. Comprehensive Ine – Statement of Stockholder?s Equity Illustration 420 460 Special Reporting Issues LO 8 Explain how to report other prehensive ine. Comprehensive Ine – Balance Sheet Presentation Illustration 421 Presentation of Accumulated Other Comprehensive Ine in the Balance Sheet Regardless of the display format used, the accumulated other prehensive ine of $90,000 is reported in the stockholders? equity section of the balance sheet. 461 Review The FASB decided that the ponents of other prehensive ine must be displayed a. in a second separate ine statement. b. in a bined ine statement of prehensive ine. c. as a part of the statement of stockholders? equity. d. Any of these options is permissible. Special Reporting Issues LO 8 Explain how to report other prehensive ine. 462 RELEVANT FACTS ? Presentation of the ine statement under GAAP follows either a singlestep or multiplestep format. IFRS does not mention a singlestep or multiplestep approach. Extraordinary items are prohibited under IFRS. ? Under IFRS, panies must classify expenses by either nature or function. GAAP does not have that requirement, but the . SEC requires a functional presentation. ? IFRS identifies certain minimum items that should be presented on the ine statement. GAAP has no minimu