New guidelines redefine how companies report income, impacting financial transparency.
The article explains how to report comprehensive income in financial statements. It discusses how to classify and present unusual items and business interruption insurance. Net income and comprehensive income are used to measure performance, with comprehensive income being more inclusive. Income from continuing operations includes all relevant revenues and expenses. There are two formats for presenting income from continuing operations: single-step and multiple-step. For interim reports, total comprehensive income must be shown, but individual components are not required.