COT

POWERPOINT PRESENTATION
 STATEMENT
OF
COMPREHENSIVE INCOME
 Individual Activity
Prepare a Personal SCI:
a. Prepare a ¼ piece of paper.
b. Write your monthly allowance (computed by daily
allowance x number of days in a month).
c. Write the amount you spendon food, transportation,
phone load, etc. (make it monthly to match their
allowance).
d. Deduct the amount they spend from the amount their
allowance.
e. Associate allowance with revenue and spending
expense with the net amount as net income.
Objectives:

1. identify the elements of the SCI and

describe each of these items for a service
business and a merchandising business.

2. Prepare an SCI for a service business using

the
single step approach.

3. Prepare an SCI for a merchandising business

STATEMENT OF COMPREHENSIVE INCOME - Also
known as the income statement. Contains the results of
the company’s operations for the specific period of time
which is called net income if it is a net positive result
while a net loss if it is a net negative result.

a. Revenue generated by operating activities.

b. Cost spent to generate the revenue
c. Income, which is the excess of revenue over
costs.
TEMPORARY ACCOUNTS – Also known as nominal
accounts are the accounts found under the SCI. They are
called such because at the end of the accounting period,
balances under these account are transferred to the
capital account, thus having temporary amounts and
resulting to zero beginning balances at the beginning of
the following year.

Examples: revenues, sales, utilities expense, salaries

expense, depreciation expense, interest expense among
others.

“For the Period”

The SCI is described as “for the period” report. This means
that the amounts presented on the report include only those the
Elements of Statement of Comprehensive Income

1. Income – refers to the increase in the economic

benefits
of the entity that may be a result of enhancement or
inflow of asset or such decrease in the liability that causes
the equity to increase. However, this does not include
additional investments made by the owners or
shareholders.
2. Expense – is decrease in the economic benefits of the
entity that maybe results of deterioration or outflow of
asset or such increase in liability that causes equity to
decrease. However, this does not include distributions to
owners or shareholders.
 ABC COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE MONTH OF DECEMBER 31, 2019

Revenues Php
1,290,000.00
Less: Expenses
890,000.00
Net Income Php
400,000.00
PRESENTATION OF SCI - There are two formats for
the SCI, namely the single – step and the multi-step.

Single-step – Called single-step because all revenues are

listed down in one section while all expenses are listed in
another. Net income is computed using a “single-step”
which is Total Revenues minus Total Expenses.
Multi-step – multi-step because there are several steps
needed in order to arrive at the company’s net income .
a. Emphasizes that the two are only formats and will yield the

same amount of net income/loss

b. Discuss that single-step SCI is more commonly used by
service companies while multi-step format is more
 Parts of the Statement of Comprehensive Income
a. Heading
i. Name of the Company
ii. Name of the Statement
iii. Date of preparation (emphasis on the wording – “for the”)

b. Sample of a Report Form SFP – Refer to the one above

i. First part is revenues This is the total amount of revenue that
the
company was able to generate from providing services to
customers
ii. Second part is expenses (can be broken down into General
and
Administrative and Selling Expenses) Please see the
discussion in
multi-step for general and administrative and selling
 STATEMENT OF COMPREHENSIVE INCOME
Heading
FOR THE MONTH OF DECEMBER 31, 2016

Service Revenue Revenues Php

100,000.00
Expenses: Expenses
Salaries Expense Php 40,000.00
Rent Expense 20,000.00
Depreciation Expense 10,000.00
Utilities Expense 5,000.00
Miscellaneous Expense 1,000.00
76,000.00

Net Income Net income/loss Php

 CLASSIFICATION OF
INCOME as to revenue and
gains is dependent on the
nature of the business.
Difference of the Statement of Comprehensive Income of a
Service Company and of a Merchandising Company

Service Company : is a business that generates income by

providing services instead of selling products. A good example of a
service company is a public accounting firm. They earn revenues
by preparing income tax returns, performing audit and asset
services, and even doing bookkeeping.
Merchandising company: is a company that buys goods and
then resells them, generally fot he higher price than they were
purchased.
There are two types of merchandising companies – retail and
wholesale. A retail company is a company that sells products
directly to customers, whereas a wholesale company is a company
that buys items in bulk from manufacturers and resells them to
retailer or other wholesalers.
Individual Activity:

At the end of the first month of operations for Juan’s

Service Company, the business had the following
accounts: Cash, Php19,000; Prepaid Rent, Php500;
Equipment, Php5,000 and
Accounts Payable Php2,000. By the end of the month,
Jackson's had earned Php20,000 of Revenues, Php1,000
of Utilities Expenses and Php1,500 of Salaries Expenses.
Calculate the net income to be reported by the company
for this first month.
Individual Activity:

Direction: Prepare a single-step Statement of comprehensive

Income using the following:

Revenues = 20,000 Utilities expense = 2,000

Rent expense = 3,000 Salaries expense = 4,000

Note: use any business name and the end of the current year for
the heading.
Thank you