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schumacher
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Joined: 01 Jan 2011
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Posts: 3

Posted: 22 Jan 2011 at 21:46 \| IP Logged

Hello,

I am using becker 2011 for my prepartion of FAR exam. I have a question on page 18 about the income statement. Letter A- Income from continuing Operations. It says non-operating activities (e.g. other revenues and gains and other expenses and losses). Could someone tell me what would be the other revenues that can be included on the income statement.

Thank you,

syousuf
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Joined: 18 Apr 2008
Location: Saudi Arabia
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Posts: 169

Posted: 22 Jan 2011 at 22:02 \| IP Logged

Revenue that a company derives from any source other than its operations.Dividend revenue,Interest revenue, Gain on sale of short-term debt investments, royalties etc.

chantel916
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Joined: 02 Aug 2009
Location: United States
Online Status: Offline
Posts: 88

Posted: 24 Jan 2011 at 01:37 \| IP Logged

I think OCI is a confusing topic, but here is what I have gathered:

OCI is income that does not flow through N/I. When OCI is listed, it is listed after N/I. N/I + OCI = Comprehensive income. The OCI account gets closed to the B/S and is listed after R/E in an account titled 'Accumulated Other Comprehensive Income' (literally it's title - an accumulation of OCI).

OCI is comprised of the PUFE nemonic (PUFE+R under IFRS):

Pension funded status changes
Unrealized G/L on available for sale securities
Foreign Currency Translation Adjustments
Effective CF Hedges
Revaluation Surpluses (IFRS ONLY)

*note that you will see each of these items in other Becker chapters

You should know -
1. OCI does not flow through N/I
2. OCI closes to AOCI
3. JE's for any of the above mentioned items in PUFE'R' will be booked to OCI - so when you perform your JE's make sure you check
4. When a company is going to realize something that has been booked to OCI, the JE will be to move the amount out of OCI and into income

I hope that helps. I think that's all right but no one is perfect. If anyone sees a mistake please correct me.

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