ADM 1340 Chapter 11: Collier Lecture Notes for Chapter 11.pdf

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Robert Collier

Document Summary

The elements of comprehensive income and additional issues. Involving the income statement (omit pp 560 - 562 and pp 567 - 572) As noted on page 11 of chapter 1, the income statement measures the performance of a company; Performance is calculated as net income which is: revenues/gains ! The net income figure reported by one company can be of a higher quality than the net income figure of another company; This concept refers to the quality of earnings and refers to the likelihood of earnings repeating in a future period; The multiple step format of the income statement was introduced on page 146 in chapter 3 (see. Exhibit 3-13) and contains certain subtotals to highlight important relationships amount the revenues/gains and expenses/losses; One of these relationships was to differentiate between income (or loss) from continuing operations and income (or loss) from discontinued operations; Assume two companies (company a and company b) reported net income of ,000 and ,000 respectively.