Format - 13-6 Unrealized loss in stockholders' equity...

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Format One format for reporting comprehensive income is to report a combined statement of income and  comprehensive income. 2  For example, assuming that Stassi Company has a net income of $300,000,  the unrealized loss would be reported below net income as follows.  Lower portion of combined statement of income and  comprehensive income Companies also report the unrealized loss on available-for-sale securities as a separate component of  stockholders' equity. To illustrate, assume Stassi Corporation has common stock of $3,000,000,  retained earnings of $1,500,000, and an unrealized loss on available-for-sale securities of $2,000.  Illustration  13-6  shows the balance sheet presentation of the unrealized loss. 
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Unformatted text preview: 13-6 Unrealized loss in stockholders' equity section Note that the presentation of the loss is similar to the presentation of the cost of treasury stock in the stockholders' equity section. (An unrealized gain would be added in this section of the balance sheet.) Reporting the unrealized gain or loss in the stockholders' equity section serves two important purposes: (1) It reduces the volatility of net income due to fluctuations in fair value, and (2) it informs the financial statement user of the gain or loss that would occur if the company sold the securities at fair value....
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Format - 13-6 Unrealized loss in stockholders' equity...

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