Unilever Group, a Dutch-based consumer-goods company that publishes IFRS-based financial statements, reported a net profit on its
Question:
Unilever Group, a Dutch-based consumer-goods company that publishes IFRS-based financial statements, reported a net profit on its 2014 income statement of 5.5 billion euros. That same year the company reported comprehensive income of only 4.2 billion euros. On its 2014 balance sheet the company did not report a separate account for accumulated comprehensive income; details were provided in the footnotes.
Johnson & Johnson, a U.S. consumer-goods company that publishes U.S. GAAP-based financial statements, reported net profit on its 2014 income statement of $16.3 billion. It reported 2014 comprehensive income of $8.5 billion, and accumulated comprehensive income in the shareholders’ equity section of the 2014 balance sheet of ($10.7 billion).
REQUIRED:
a. Explain the difference between net profit and comprehensive income.
b. Explain the difference between comprehensive income for a given year and accumulated comprehensive income, which appears on the balance sheet as of the end of that year.
c. On which financial statement could you find a reconciliation of the beginning and ending balances of comprehensive income (or total recognized income and expense) for a given period of time?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Net income is the difference between revenue and expenses over a given time period Comprehe...View the full answer
