Tag Archives: asc 225

Income Statement, ASC 225

Income Statement

Income attributable to the noncontrolling interest

SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements
an Amendment of ARB No. 51”

ARB 51, August 1959
“Consolidated Financial Statements”

1. SFAS 160 amended ARB No. 51

2. On the face of the consolidated financial statements
–> report (A1) and (A2) separately
(A1) Consolidated net income attributable to the parent
(A2) Consolidated net income attributable to the noncontrolling interest

3. On the face of the consolidated financial statements
–> report (B1) and (B2) separately
(B1) Consolidated comprehensive income attributable to the parent
(B2) Consolidated comprehensive income attributable to the noncontrolling interest

4. SFAS 160, Transition
The requirements for presentation and disclosure are
–> applied “retrospectively”
–> for all periods presented

4a. Consolidated net income is adjusted
–> to include net income attributed to the noncontrolling interest

4b. Consolidated comprehensive income is adjusted
–> to include comprehensive income attributed to the noncontrolling interest

4c. Noncontrolling interest is reclassified
–> to equity

Line items of income statement

1. Net sales
2. Cost of sales
3. Selling, general and administrative (SG&A) expenses
4. Provisions for doubtful accounts
5. Non-operating income
6. Interest income and interest expense
7. Non-operating expenses
8. Income before income taxes
9. Income taxes
10. Earnings on equity investments
11. Income from continuing operations
12. Discontinued operations
13. Net income
14. Net income attributable to the noncontrolling interest
15. Net income attributable to the controlling interest
16. Earnings per share (Basic EPS and Diluted EPS)

 

© AccountingInfo.com

 

Income Statement, Extraordinary and Unusual Items, ASC 225

Income Statement
Extraordinary and Unusual Items

FASB issued an Accounting Standards Update, ASU 2015-01, in January 2015
Topic: Income Statement – Extraordinary and Unusual Items (asc 225-20)
The concept of extraordinary items was eliminated.
Unusual or infrequently occurring items are
presented as a separate component of income from continuing operations or
disclosed in the notes to financial statements

Extraordinary Items before ASU 2015-01
APB Opinion No. 30, June 1973
“Reporting the Results of Operations – Reporting the Effects of Disposal of a Segment of a Business,
and Extraordinary, Unusual and Infrequently Occurring Events and Transactions”

 Criteria for extraordinary items
1. Unusual nature
2. Infrequency of occurrence

 Presentation of extraordinary items
1. Extraordinary items are
–> presented separately in the income statement
2. Earnings per share for extraordinary items
–> presented in the income statement or in the notes

 The following items are “not” extraordinary items
1. Effects of a strike
2. Gains or losses from the abandonment of property, plant and equipment
3. Impairment of receivables and inventories
4. Foreign currency translation gains or losses
5. Gains or losses from the disposal of an entity’s components

[Note] The concept of extraordinary items was deleted by ASU 2015-01.

 

© AccountingInfo.com

 

Extraordinary and Unusual Items, ASU 2015-01

FASB issued an Accounting Standards Update, ASU 2015-01, in January 2015

Topic: Income Statement – Extraordinary and Unusual Items (asc 225-20)

  • The concept of extraordinary items was eliminated.
  • Unusual or infrequently occurring items are
    • presented as a separate component of income from continuing operations or
    • disclosed in the notes to financial statements

 

© AccountingInfo.com