Method for Determination and Recognition of Comprehensive Income of Business Entity

Abstract

The theory and methodology of representation of comprehensive income of a business entity in financial reporting are considered. It is found that the modern interpretation of the concept of "comprehensive income" in the national financial statements, in contrast to the concept of "comprehensive profit" in IFRS, is based on a similar definition. It was established that comprehensive income indicator does not reflect the actual economic content of summary statement of financial results (comprehensive income report). It is substantiated that the said articles in Section II "Comprehensive Income" result only in the change in the value of assets as of a certain date, and the profit ( loss) received as a result of these operations is not related to the sale of goods, works, services, which confirms their unrealistic nature and provides confidence to call them "unrealized profits (losses)". It is proposed to make changes to the names of separate articles of form 2 and the report itself. The methodological discrepancy between operations concerning the 1st and 2nd sections f. 2 is explored, which made it possible to propose changes in the form and content of Section II of the Financial Results (Comprehensive Income Report)".