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Hi does anyone know if SOCI (Statement Of Comprehensive Income) is the equivalent to the UK Profit and Loss account. Also if a gain or loss is going to SOCI is it a realised or unrealised gain/loss. Also I am not sure what “Other Comprehensive Income” stands for is this the equivalent of the UK STRGL.
Many thanks
There is no difference , the profit and loss account or statement of compreshensive income are two name of same thing. Income statement or statement of comprehensive income or p&L a/c always realised profit is included.
Unrealised profit is shown in a seperate heading of OTHER COMPREHENSIVE INCOME in order to clearly show which profit is realised and which one not. This qualifies the one of the characteristic of financial statements ‘ UNDERSTANDABILITY’. Hope this answer ur question!!Hi There,
I wonder if you can help me, I have been stuck on this for a few days and cant seem to get my head around it. The treatment of dividends in consolidation: say a subsidiary are proposing a payment of 10,000, i think in SOFP we cr retained earnings dr payables. However, on the open tuition lecture (Ch8 example 4) it is the other way: dr ret earnings and cr payables. How can this be so? If it was the income statement then this is right but not the SOFP. Am i missing something here?
Yes – sorry to say this, but you’re missing basic double entry from F3 level!
When a dividend is proposed, we need to reduce retained earnings – so Dr Ret Ears – and increase liabilities – so Cr Accounts PayableIs that better?
thanks for answering Mike, but from what i remember from f3, to do a debit entry is to increase right? so for instance if i am debiting cash and crediting inventory, I am effectively increasing cash and decreasing inventory. So in the case of my example above, by debiting retained earnings, I am increasing it, and by crediting liabilities I am decreasing it.
I am I totally off course??
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