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ACCA Applied Knowledge · Financial Accounting · Statement of profit or loss and other comprehensive income

Zeta Co reports profit for the year of $240,000. During the year it revalued land upwards by $60,000 (the land had no previous revaluation). It also paid a dividend of $50,000 and issued shares for $100,000. What is Zeta Co's total comprehensive income for the year?

Total comprehensive income is $300,000, being profit of $240,000 plus the $60,000 revaluation gain in other comprehensive income. Dividends and share issues are transactions with owners, reported in the statement of changes in equity, so they do not affect total comprehensive income.

  1. A$300,000Correct
  2. B$250,000
  3. C$350,000
  4. D$190,000

Explanation

Total comprehensive income = profit $240,000 + other comprehensive income $60,000 = $300,000. Dividends and share issues are transactions with owners shown in the statement of changes in equity, not in comprehensive income. Deducting the dividend gives $250,000, which is wrong.

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