Question

Companies are required to transfer “other comprehensive income” each period to shareholders’ equity. The FASB Accounting Standards Codification^® represents the single source of authoritative U.S. generally accepted accounting principles. Obtain the relevant authoritative literature on reporting other comprehensive income in shareholders’ equity using the FASB Accounting Standards Codification^® at the FASB website (www.fasb.org).

Required:
1. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that describes the guidelines for reporting that component of shareholders’ equity?

2. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that describes the guidelines for presenting accumulated other comprehensive income on the statement of shareholders’ equity?

Answer 1

Stockholder's equity include all the account balance of equity that is common share, retained earnings, preferred stock. Common share value include value of shares issued by company till date, retained earnings would include accumulated net income less dividend declared Preferred stock would Include the amount of preferred shares issued by company. Stockholder's equity is the amount of capital contributed by owner and internally generated capital.

Explanation:

1. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that describes the guidelines for reporting that component of shareholders' equity?

Regulation S-X Rule 3-03, Instructions to Statement of Comprehensive Income Requirements

220-10-S99-1

2. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that describes the guidelines for presenting accumulated other comprehensive income on the statement of shareholders' equity?

Regulation S-X Rule 5-03, Income Statements of Comprehensive Income

220-10-S99-2