9th Edition

ISBN: 9781260216141

Author: SPICELAND

Publisher: MCG CUSTOM

See similar textbooks

Videos

Textbook Question

Chapter 18, Problem 18.4BYP

Research Case 18–4

FASB codification; comprehensive income; locate and extract relevant information and authoritative support for a financial reporting issue; integrative; Cisco Systems

• LO18–2

Real World Financials

Chapter 18, Problem 18.4BYP, Research Case 184 FASB codification; comprehensive income; locate and extract relevant information

Required:

1. Locate the financial statements of Cisco at www.sec.gov or Cisco’s website. Search the 2015 annual report for information about how Cisco accounts for comprehensive income. What does Cisco report in its balance sheet regarding comprehensive income?

2. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Identify the specific citation from the authoritative literature that describes the two alternative formats for reporting comprehensive income.

3. What is comprehensive income? How does it differ from net income? Where is it reported in a balance sheet?

4. One component of Other comprehensive income for Cisco is “net unrealized gains on investments.” What does this mean? From the information Cisco’s financial statements provide, determine how the company calculated the $61 million accumulated other comprehensive income at the end of fiscal 2015.

5. What might be possible causes for the “Other” component of Cisco’s Other comprehensive income? Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company:

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 18, Problem 18.2BYP

Chapter 18, Problem 18.5BYP

Students have asked these similar questions

Quick answer of this accounting questions

Dull Corporation produces a single product and has the following cost structure: Number of units produced each year 6,000 Variable costs per unit: Direct materials Direct labor $43 $13 $5 Variable manufacturing overhead Variable selling and administrative expense $1 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The absorption costing unit product cost is: A. $95 B. $119 C. $61 D. $56 $204,000 $138,000

What is its gross income for the year of this general accounting question?

Chapter 18 Solutions

INTERMEDIATE ACCOUNTING(LL)-W/CONNECT

Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author describes the two alternative formats for reporting comprehensive income of C Company, from the FASB Accounting Standards Codification.

Videos

Want to see the full answer?

Chapter 18 Solutions