What is Statement of Comprehensive Income?
The statement of comprehensive income is a primary IFRS financial statement that reports a company’s total comprehensive income, comprising net profit or loss plus other comprehensive income (OCI). OCI captures specific gains and losses that are recognized directly in equity rather than through profit or loss, such as remeasurements of defined benefit obligations and certain financial instrument and FX gains/losses.
How It Works
- Start with net profit or loss for the period.
- Add OCI items that will not be reclassified to P&L (revaluation surplus, EOSB remeasurement).
- Add OCI items that may be reclassified to P&L (cash flow hedge effective portion, FX translation).
- Total = Comprehensive Income for the period.
- Present either as a single statement or two separate statements (P&L plus OCI).
Saudi Context
Tadawul-listed Saudi companies present the statement of comprehensive income in IFRS format alongside the income statement, either as a continuation or as a separate statement. End-of-service benefit actuarial remeasurements and FX translation of foreign subsidiaries are common Saudi OCI items.
Example
A company reports net profit of SAR 80 million, plus OCI items of SAR 5 million from actuarial gains on EOSB remeasurement (not reclassifiable) and SAR 3 million from cash flow hedge effective portion (reclassifiable). Total comprehensive income = SAR 88 million.