A set of financial statements includes an equity statement with a column headed “Accumulated other comprehensive income”. Which framework was applied?
A set of financial statements includes an equity statement with a column headed “Accumulated other comprehensive income”. Which framework was applied?
Answer
IFRS — ASPE has no concept of OCI
Options - A. IFRS — ASPE has no concept of OCI - B. ASPE — IFRS records these gains in net income - C. Either; both frameworks present AOCI - D. Neither; AOCI is a US GAAP presentation Why - A. Correct — other comprehensive income exists only under IFRS; the accumulated balance is a component of IFRS equity. - B. This is reversed: IFRS routes certain gains around net income into OCI; ASPE has no OCI at all. - C. ASPE presents a statement of retained earnings and has no OCI. - D. US GAAP also has OCI, but so does IFRS — and the course’s two frameworks are IFRS and ASPE.
Lyryx IFA Vol 2 §18.3, §18.6; Lyryx IFA Vol 1 §3.5