Other comprehensive income: reclassifiable or not

Learning objectives

• Distinguish items that may be reclassified to profit or loss from those that will not be.L2
• Calculate total comprehensive income from profit or loss and the other comprehensive income items.L2, L3

Normative references

• IAS 1 §82AItems of other comprehensive income are grouped into those that will not be reclassified subsequently to profit or loss and those that will be reclassified subsequently to profit or loss when specific conditions are met; the share of the other comprehensive income of entities accounted for using the equity method follows the same split.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• Other comprehensive income is grouped into items that will not be reclassified to profit or loss and items that will be reclassified to profit or loss when specific conditions are met.L2
• Pivoine SA made a profit of {profit_for_the_period}. Its other comprehensive income, net of tax (case convention), comprises a gain on translating foreign operations of {fx_translation_gain} and a cash flow hedge loss of {cash_flow_hedge_loss}, which will be reclassified to profit or loss when specific conditions are met, and a remeasurement loss on a defined benefit plan of {defined_benefit_loss}, which will not be reclassified (classification provided by the case). Calculate the subtotal of reclassifiable items, then total comprehensive income.L2
• Érable SA holds, in its reserve of reclassifiable other comprehensive income, a cumulative gain of {cumulative_reserve_reclassified} relating to an item for which the relevant standard now requires reclassification to profit or loss (case fact: IAS 1 does not decide this reclassification, the standard that creates the item does). Record the entry reclassifying the gain to profit or loss.L2