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Accounting: Reporting of Comprehensive Income Research Paper (Research Paper Sample)


I will attach you guys a research paper. I just need you guys to paraphrase it. Please make sure that it is 0 plagiarism.
Research Case 18-4
Requirement 1
Cisco reports Accumulated other comprehensive income (loss) in its balance sheet as a component of shareholders’ equity as follows:
Cisco relies on FASB ASC 220–10–45–8:  “Comprehensive Income–Overall–Other Presentation Matters” when reporting comprehensive income. Cisco reports a separate statement of comprehensive income in a disclosure note.
45-8  An entity shall display comprehensive income and its components in a financial statement that is displayed with the same prominence as other financial statements that constitute a full set of financial statements. This Subtopic does not require a specific format for that financial statement but requires that an entity display net income as a component of comprehensive income in that financial statement. Examples 1 through 2 (paragraphs 220-10-55-4 through 55-27) provide illustrations of the components of other comprehensive income and total comprehensive income being reported below the total for net income in a statement that reports results of operations, in a separate statement of comprehensive income that begins with net income, and in a statement of changes in equity.
Comprehensive income is a more expansive view of the change in shareholders’ equity than traditional net income.  It is the total nonowner change in equity for a reporting period.  In fact, it encompasses all changes in equity other than from transactions with owners. Transactions between the corporation and its shareholders primarily include dividends and the sale or purchase of shares of the company’s stock.  Most nonowner changes are reported in the income statement.  So, the changes other than those that are part of traditional net income are the ones reported as “other comprehensive income.”  Two attributes of other comprehensive income are reported: (1) components of comprehensive income created during the reporting period and (2) the comprehensive income accumulated over the current and prior periods.


Reporting of Comprehensive Income
Reporting of Comprehensive Income
Requirement 1
Cisco reports its cumulative other inclusive revenue (loss) in its balance statement as part of shareholders’ equity values as follows.
($ in millions)
Shareholders' equity: 2010 2011
Preferred stock
Ordinary stock and additional paid-in capital 39,344 30,505
Retained earnings (cumulative arrears) 4,868 100
Accumulated other inclusive income (loss) 535 428
Total shareholders' equity 44,747 31,033
Requirement 2
Cisco depends on FASB ASC 220–10–45–8: “Inclusive Income–Overall–Other Presentation Matters” when reporting inclusive income. Cisco reports a different statement of inclusive earnings in a discovery note.
A business organization shall present comprehensive earnings and its expenditure in a fiscal statement that is highlighted with the same significance as other fiscal statements that represent a complete set of financial statements. In this analysis we shall only highlight a business’s net earnings as an important factor of comprehensive returns in that particular financial statement. To support this assumption, illustrations 1 through 2 have elaborate examples of the constituents of other inclusive earnings and total comprehensive revenue that are usually reported below the total net income in a statement that reports outcomes of business activities, in a separate statement of comprehensive returns starting with net earnings, and in a statement of changes in share value.
Requirement 3
Comprehensive earnings provide a wider perspective in understanding changes in shareholders’ share value than the traditional net earnings. It shows the total non-owner change in share value for a fiscal year. In fact, it includes all changes in equity other than those incurred from transactions with

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