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SCI Sample Problem

The document provides information needed to prepare the Statement of Comprehensive Income for Highlands Leisure Company and Subsidiaries for the year ended December 31, 2020. It lists revenues, expenses, other income/expenses, and tax information. It also specifies the required presentation of the statement, including separate lines for income before tax, provision for income taxes, net income, other comprehensive income, and total comprehensive income.

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Lee Teuk
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77 views1 page

SCI Sample Problem

The document provides information needed to prepare the Statement of Comprehensive Income for Highlands Leisure Company and Subsidiaries for the year ended December 31, 2020. It lists revenues, expenses, other income/expenses, and tax information. It also specifies the required presentation of the statement, including separate lines for income before tax, provision for income taxes, net income, other comprehensive income, and total comprehensive income.

Uploaded by

Lee Teuk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Polytechnic University of the Philippines

COLLEGE OF ACCOUNTANCY AND FINANCE


Department of Accountancy

STATEMENT OF COMPREHENSIVE INCOME

Highlands Leisure Company and Subsidiaries is to prepare the Statement of Comprehensive Income* of
the entity for the year ended December 31, 2020. The entity opted to present the Statement of
Comprehensive Income in the following way:
• Revenues are grouped together and will involve normal operating revenues, other revenues,
dividend income, and equity in net earnings of associate companies and joint ventures.
• Cost and expenses are grouped together and will involve all cost of sales and selling, general, and
administrative expenses. There will no presentation, however, of gross profit.
• All other income and expenses are reported separately from the items mentioned above.
• A separate line item is to be presented for income before income tax.
• Presentation of provision for income taxes will involve both current and deferred.
• Net income is presented right after the tax information.
• Other comprehensive income and losses will be adjusted and presented immediately after net
income to report the entity’s total comprehensive income.
• Other comprehensive income (loss) should be segregated in presentation – those that will be
reclassified in P/L in subsequent periods, and those that will not be.

*For purposes of discussion, net income and total comprehensive income attributable to owners of the parent and
noncontrolling interest, and earnings per share information will not be presented in the Statement for now.

The following information is made available by the entity:


1. Merchandise sales and real estate sales of the entity amounts to P289,726,442 and P47,023,795,
respectively. Cost of merchandise sales amounts to P220,245,198 while cost of real estate sales
amounts to P20,583,982.
2. Total selling, general, and administrative expenses of the entity amount to P95,482,554.
3. The entity is also into the following activities where they earn: rent - P26,904,979; royalty,
management, and service fees – P3,936,537; cinema and amusement ticket sales - P1,095,445.
4. Dividend income amounts to P430,696.
5. Equity in net earnings of associate companies and joint ventures amount to P17,036,367. Other
revenues amount to P8,031,444.
6. All other income and expenses aside from the amounts reported above are as follows: interest
expense - P18,023,610; interest income – P2,436,015; impairment loss on investment – P1,000,000;
foreign exchange gain - net and others (not OCI) - P129,286.
7. Tax information is as follows: current - P6,407,055; deferred - P683,565
8. Other comprehensive income (loss) is as follows: Remeasurement gain (loss) on defined benefit
obligation - P4,108,271; Share in unrealized gain (loss) on financial assets at fair value through
other comprehensive income (FVOCI) of associates* - P2,280,460; Net unrealized loss on financial
assets at FVOCI - P(302,553); Cumulative translation adjustment - P(322,636); Income tax relating
to items not to be reclassified to profit or loss in subsequent periods - P(776,519); Net fair value
changes on cash flow hedges - P(1,556,934).

*Please include in items that will be reclassified to profit or loss in subsequent periods.

Prepare Highlands Leisure Company and Subsidiaries’ (consolidated) Statement of Comprehensive Income
for the year ended December 31, 2020.

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