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    2.SCI and SCE

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    Rocky Bassig
    The document discusses key financial statements including the Statement of Comprehensive Income (SCI) and Statement of Changes in Equity (SCE). The SCI presents revenues and expenses over a period to determine profit or loss. The SCE shows changes in owner's equity such as capital contributions and withdrawals. The SCI links to the SCE as net income is added to equity, and the SCE links to the Statement of Financial Position which reports ending equity.

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    2.SCI and SCE

    Uploaded by

    Rocky Bassig
    613 views27 pages
    The document discusses key financial statements including the Statement of Comprehensive Income (SCI) and Statement of Changes in Equity (SCE). The SCI presents revenues and expenses over a period to determine profit or loss. The SCE shows changes in owner's equity such as capital contributions and withdrawals. The SCI links to the SCE as net income is added to equity, and the SCE links to the Statement of Financial Position which reports ending equity.

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    The document discusses key financial statements including the Statement of Comprehensive Income (SCI) and Statement of Changes in Equity (SCE). The SCI presents revenues and expenses over a period to determine profit or loss. The SCE shows changes in owner's equity such as capital contributions and withdrawals. The SCI links to the SCE as net income is added to equity, and the SCE links to the Statement of Financial Position which reports ending equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    613 views27 pages

    2.SCI and SCE

    Uploaded by

    Rocky Bassig
    The document discusses key financial statements including the Statement of Comprehensive Income (SCI) and Statement of Changes in Equity (SCE). The SCI presents revenues and expenses over a period to determine profit or loss. The SCE shows changes in owner's equity such as capital contributions and withdrawals. The SCI links to the SCE as net income is added to equity, and the SCE links to the Statement of Financial Position which reports ending equity.

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    STATEMENT OF

    COMPREHENSIVE INCOME
    AND STATEMENT OF CHANGES
    IN EQUITY
    01
    STATEMENT OF
    COMPREHENSIVE
    INCOME
    STATEMENT OF COMPREHENSIVE INCOME
    The Statement of Comprehensive Income is
    a financial statement that presents the success or
    failure of business operations of a company for a
    given period, in terms of profitability. It requires an
    entity to present revenues and expenses.
    STATEMENT OF COMPREHENSIVE INCOME
    The Income Statement, also called Profit and
    Loss Statement, contains the following:
    A. The Heading
    1. Name of the Business
    2. Title of the Report
    3. Period of Time Covered by the Report
    B. The Revenue Section
    C. The Expense Section
    D. The Net Income or Net Loss
    02
    ELEMENTS
    OF INCOME
    STATEMENT
    ELEMENTS OF INCOME STATEMENT
    Nominal accounts are termed as such because
    these are temporary accounts containing the
    revenues and expenses of the business during an
    accounting period.
    ELEMENTS OF INCOME STATEMENT
    ELEMENTS OF INCOME STATEMENT
    03
    SINGLE-STEP
    AND MULTI-STEP
    SCI FORMATS
    SINGLE- STEP AND MULTI- STEP
    SCI FORMATS
    Heading of the SFP can be applied to the SCI
    because the two statements are similar except for the
    time period, which can be one year or less for the
    SCI. Another similarity is in having two formats. In the
    same manner, the SCI uses two formats the single-
    step and the multi-step.
    SINGLE- STEP SCI FORMAT
    MULTI- STEP SCI FORMAT
    04
    STATEMENT
    OF CHANGES
    IN EQUITY
    STATEMENT OF CHANGES IN EQUITY
    The Statement of Changes in Equity (SCE) is
    the financial statement that presents the movements
    of the owner's equity (capital) account during the
    reporting period. It reflects the ending balance of the
    owner’s equity.
    RESULT OF OPERATION IS A NET INCOME
    RESULT OF OPERATION IS A NET LOSS
    05
    FUNDAMENTAL
    RELATIONSHIP
    AMONG
    THE FINANCIAL
    STATEMENTS
    FUNDAMENTAL RELATIONSHIP AMONG
    FINANCIAL STATEMENTS
    The SCI shows the net income of the business.
    Net income is then reflected in the SCE as an
    addition to the beginning balance of capital. From the
    total beginning capital and net income, withdrawals
    of the owner are deducted to arrive at ending
    balance of capital. The ending balance of capital is
    then transferred to the SFP.
    THANK YOU!
    ACTIVITY ON STATEMENT OF
    COMPREHENSIVE INCOME
    AND STATEMENT OF CHANGES
    IN EQUITY
    ACTIVITY: SCI AND SCE
    You have been appointed as the accountant of a
    merchandising enterprise. You get the following
    Adjusted Trial Balance. Prepare its SCI, SCE, and
    SFP.
    Income Statement
    Statement of Changes in Equity
    Statement of Financial Position
    THANK YOU!

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