Titan Networking became a public company through an IPO (initial public offering) two weeks ago. You are looking forward to the challenges of being assistant controller for a publicly owned corporation. One such challenge came in the form of a memo in this morning’s in-box. “We need to start reporting comprehensive income in our financials,” the message from your boss said. “Do some research on that, will you? That concept didn’t exist when I went to school.” In response, you sought out the financial statements of Cisco Systems, the networking industry leader. The following is an excerpt from Cisco’s 2020 annual report:

Required:
1. Locate the financial statements of Cisco in the Investor Relations section of Cisco’s website. Search the 2020 annual report for information about how Cisco accounts for comprehensive income. What does Cisco report in its balance sheet for 2020 Accumulated other comprehensive income?
2. From the information Cisco’s financial statements provide, determine the three components of other comprehensive Income (loss) and their amounts that constitute the change in the accumulated other comprehensive income from the end of fiscal 2019 to the end of fiscal 2020.
3. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org) and select Basic View for free access. Identify the specific eight-digit Codification citation (XXX-XX-XX-X) from the authoritative literature that describes the two alternative formats for reporting comprehensive income.

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Net income Available-for-sale investments: Change in net unrealized gains and losses, net of tax benefit (expense) of $(84), $(101), and $(11) for fiscal 2020, 2019, and 2018, respectively Net (gains) losses reclassified into earnings, net of tax expense (benefit) of $21, $6, and $104 for fiscal 2020, 2019, and 2018, respectively July 25, 2020 $11,214 336 (21) 315) Years Ended July 27, 2019 $11,621 459 19 478 July 28, 2018 $ 110 (554) (183) (737) (continued)