1. Other comprehensive income is a category of comprehensive income made up of specific gains and losses that are reported separately after net earnings under IFRS. These concepts do not exist under ASPE. Rather ASPE only requires the reporting of net income.

a. Discuss the rationale for excluding other comprehensive income items from ASPE. Use examples of items that are currently reported under other comprehensive income and discuss their treatment under ASPE. [3 marks]

b. Earnings per share (EPS) is calculated using net earnings if a company follows IFRS. Discuss the pros and cons of calculating EPS on comprehensive income rather than net income. [2 marks]