CFA Level I · CFA Level I Exam · Analyzing Income Statements
A company reports net income of 480, an unrealized gain of 35 on a debt investment measured at fair value through OCI, a foreign currency translation loss of 20, and dividends paid of 90. Total comprehensive income is closest to:
Total comprehensive income is about 495. It is net income of 480 plus the 35 unrealized gain minus the 20 translation loss. Dividends paid to owners are not part of comprehensive income, so the 90 is excluded.
- A395
- B495Correct
- C585
Explanation
Comprehensive income = 480 + 35 - 20 = 495. Dividends are a distribution to owners and are excluded. Subtracting dividends gives 405 less... specifically 495 - 90 = 405, which is wrong; adding gains while ignoring the loss gives 515, also wrong. Option A (395) and C (585) are other errors.
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