CFA Level I · CFA Level I Exam · Analyzing Income Statements
Under IFRS, comprehensive income for a period is most accurately described as the change in:
Comprehensive income is the change in equity during a period from non-owner sources. It equals net income plus other comprehensive income and excludes investments by owners and distributions to owners, such as share issuance and dividends.
- Aequity from transactions with non-owner sourcesCorrect
- Bretained earnings arising from operating activities only
- Cequity during a period from all sources, including owner contributions and distributions
Explanation
Comprehensive income is the change in equity during a period resulting from transactions and other events from non-owner sources. It therefore includes net income plus other comprehensive income, but excludes owner contributions and distributions such as share issues and dividends. The third option wrongly includes owner transactions.
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