When Preparing and Presenting a Consolidated Statement of Comprehensive Income

question 11

Multiple Choice

When preparing and presenting a consolidated statement of comprehensive income the NCI is:

• A) presented as a separate component of revenue
• B) shown as a separate component of profit before tax and a separate component of tax expense
• C) shown as a separate component of each line item
• D) presented as a separate portion of profit or loss.

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Definitions:

Forfeiture

The loss of any right, property, or money, usually because of a breach of legal obligation or failure to fulfill some condition.

Financial Covenant

A clause in a loan agreement that requires the borrower to fulfill certain financial conditions, aiming to protect the lender’s interests by monitoring the financial performance and health of the borrower.

GAAP

Generally Accepted Accounting Principles, a collection of commonly followed accounting rules and standards for financial reporting in the United States.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.