Income stat04

Income stat04 - 4-1 INCOME STATEMENT AND SCF DEFINITION OF...

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4-1 INCOME STATEMENT AND SCF DEFINITION OF INCOME ALL INCLUSIVE INCOME OPERATING VS NONOPERATING SINGLE VS MULTIBLE-STEP IS DISCONTINUED OPERTIONS EXTRAORDINARY GIANS AND LOSSESS UNUSUAL OR INFREQUENT ITEMS OPERATING, INVESTING AND FINANCING ACTIVITIES
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4-2 Operating Income Nonoperating Income Operating Income Versus Nonoperating Income Includes revenues and expenses directly related to the principal revenue- generating activities of the company Includes gains and losses and revenues and expenses related to peripheral or incidental activities of the company
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4-3 Expenses Outflows of resources incurred in generating revenues. Revenues Inflows of resources resulting from providing goods or services to customers. Gains and Losses Increases or decreases in equity from peripheral or incidental transactions of an entity. Income from Continuing Operations Income Tax Expense Because of its importance and size, income tax expense is a separate item.
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4-4 Comprehensive Income An expanded version of income that includes four types of gains and losses that traditionally have not been included in income statements.
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4-5 Other Comprehensive Income Statement of Financial Accounting Standards No. 130 Comprehensive income includes traditional net income and changes in equity from nonowner transactions. 1. Changes in the market value of securities available for sale (described in Chapter 12). 2. Reporting a pension liability sometimes requires a reduction in shareholders’ equity (described in Chapter 17). 3. When a derivative is designated as a cash flow hedge is adjusted to fair value, the gain or loss is deferred as a component of comprehensive income and included in earnings later, at the same time as earnings are affected by the hedged transaction (described in Chapter 14). 4. Gains or losses from changes in foreign currency exchange rates (discussed elsewhere in your accounting curriculum).
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4-6 Accumulated Other Comprehensive Income In addition to reporting comprehensive income that occurs in the current period, we must also report these amounts on a cumulative basis in the balance sheet as an additional component of shareholders’ equity. (In millions, except shares) 2004 2003 Common Stockholders' Investment: Common stock, $.10 par value, 800 million shares authorized, 300 million shares issued for 2004 and 299 million shares 30 $ 30 $ issued for 2003 Additional paid-in capital 1,079 1,088 Retained earnings 7,001 6,250 Accumulated other comprehensive loss (46) (30) 8,064 7,338 Less deferred compensation and treasury stock at cost 28 50 Total common stockholders' investment 8,036 $ 7,288 $ FedEx Corporation Balance Sheet 31-May
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4-7 Income Statement (Single-Step) Expenses & Losses { { Revenues & Gains { Proper Heading
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4-8 Income Statement (Multiple-Step) { Non- operating Items { Gross Profit { Proper Heading Operating Expenses {
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4-9 Earnings Quality Earnings quality refers to the ability of reported earnings to predict a company’s future.
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Income stat04 - 4-1 INCOME STATEMENT AND SCF DEFINITION OF...

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