The following is an excerpt from a disclosure note from the 2011 annual report of Kaufman Chemicals,

Question:

The following is an excerpt from a disclosure note from the 2011 annual report of Kaufman Chemicals, Inc.

Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:

Required:

1. What is comprehensive income and how does it differ from net income?

2. How is comprehensive income reported in a balance sheet?

3. Why is Kaufman's 2011 balance sheet amount different from the 2011 amount reported in the disclosure note? Explain.

4. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in 2011.

Balance Sheet
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...