Republic of the Philippines

Laguna State Polytechnic University

Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

LSPU Self-Paced Learning Module (SLM)

Course Intermediate Accounting 3
Sem/AY First Semester/2024 - 2025
Module No. 3
Lesson Title Statement of Comprehensive Income and Statement of Changes in Equity
Week
4-5
Duration
Date
Description This lesson will discuss the preparation of the Statement of Comprehensive Income
of the and Statement of Changes in Equity.
Lesson

Learning Outcomes
Intended Students should be able to meet the following intended learning outcomes:
Learning • Identify minimum information in the statement of comprehensive income and
Outcomes the items which must appear in each one
• Prepare reclassification adjustment from other comprehensive income to profit
or loss
• Prepare statement of comprehensive income
• Identify the information to be presented on the face of the statement of
comprehensive income as provided in PAS No. 1
• Differentiate between statement of profit or loss and other comprehensive
income and statement of changes in equity
• Describe the acceptable methods of presenting items of income and expenses
• Prepare a statement of changes in equity

Targets/ At the end of the lesson, students should be able to:

Objectives • Prepare properly classified statement of comprehensive income
• Prepare statement of changes in equity

Student Learning Strategies

Online Activities (Synchronous / Asynchronous)

A. Online Discussion via Google Meet

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3

Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
You will be directed to attend in a one-hour class discussion on the statement of
financial position and notes. To have access to the Online Discussion, refer to this
link: ____________________.

The online discussion will happen on ________, 2023, from _______AM.

(For further instructions, refer to your Google Classroom and see the schedule of
activities for this module)

B. Learning Guide Questions:

1. What are the minimum information / classification in the statement of
comprehensive income?
2. What are the components of other comprehensive income?
3. What are the acceptable methods of presenting income and expenses?
4. What are the items found in the statement of changes in equity?

Note: The insight that you will post on online discussion forum using Learning Management System (LMS) will
receive additional scores in class participation.

Offline Activities (e-Learning / Self-Paced)

Lecture Guide

Minimum information in the Statement of Comprehensive Income(PAS 1.81A)

1. Profit or loss ( total of income less expenses)
a. Revenue, presenting separately interest revenue
b. Finance costs
c. Gains and losses arising from the derecognition of financial assets measured
at amortized cost
d. Impairment losses and impairment gains on financial assets
e. Gains and losses on reclassifications of financial assets from amortized cost
or fair value through OCI to fair value through P & L
f. Share of the profit or loss of associates and jointly controlled entity
accounted for using the equity method
g. Tax expense
h. A single amount for the total of discontinued items
2. Other comprehensive income items of income and expense (including
reclassification adjustments) that are not recognized in profit or loss as required
or permitted by other PFRS.
a. Changes in revaluation surplus where the revalued model is used
b. Remeasurement of a net defined benefit liability or asset recognized in
accordance with PAS 19
c. Gains and losses on remeasuring an investment in equity instruments where
the entity has elected to present them in other comprehensive income in
accordance with PFRS 9

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3

Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
d. Exchange differences from translating functional currencies into
presentation currency
e. The effective portion of gains and losses on hedging instruments in a cash
flow hedge under PAS 39 or PFRS 9
f. Gains and losses on remeasuring derivative instruments under cash flow
hedge
g. The effects of changes in the credit risk of a financial liability designated as at
fair value through profit and loss under PFRS 9
h. Changes in the time value of option when the option’s intrinsic value and
time value are separated and only the changes in the intrinsic value is
designated as the hedging instrument
i. Changes in the value of forward elements of forward contracts when
separating the forward element and spot element of a forward contract and
designating as the hedging instrument only the changes in the spot element,
and changes in the value of the foreign currency basis spread of a financial
instrument as the hedging instrument
3. Share of the other comprehensive income of investment in associates and jointly
controlled entity accounted for using the equity method
4. Total comprehensive income= profit or loss + other comprehensive income (PAS
1.7)

An entity may present its total comprehensive income either:

– In a single Statement of Comprehensive Income; or
– In two statements
1. An income statement and
2. A statement of comprehensive income
A change in presentation is considered a change in accounting policy

The other comprehensive income section is required to present line items which are
classified by their nature, and grouped between those items that will or will not be
reclassified to profit and loss in subsequent periods (PAS 1.82a)

An entity’s share of OCI of equity-accounted associates and joint ventures is presented in

aggregate as single line items based on whether or not it will subsequently be reclassified
to profit or loss (PAS 1.82a)

When an entity present subtotals,

• those subtotals shall be comprised of line items made up of amounts recognized
and measured in accordance with PFRS;
• be presented and labelled in a clear and understandable manner;
• Be consistent from period to period;
• Not be displayed with more prominence than the required subtotals and totals; and
• Reconciled with the subtotals or totals required in PFRS (PAS 1.85A-1.85B)

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3

Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
Reclassification adjustments -are amounts reclassified to profit or loss in the current
period that were recognized in other comprehensive income in the current or
previous periods (PAS 1.7)

Separate disclosure of nature and amount of material items of income and expense (on face
or in notes)

Do not describe or present income and expenses as “extraordinary”

Present an analysis of expenses based on either:

⚫ By the nature of the expense, such as
– Purchases of materials
– Depreciation
– Transportation costs
– Employee benefits
– Advertising costs
⚫ By their function within the entity, such as
– Cost of sales
– Distribution costs
– Administrative costs

Engaging Activities

To be posted online.

Performance Tasks

Multiple Choice questions to be given ONLINE, either Google classroom-based or through

any other online software formats, if LMS is not feasible.

Understanding Directed Assess

Rubrics
Criteria 4 3 2 1
Identified Correctly identified Correctly identified Made at least one Answer was

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3

Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
and proper accounting proper accounting, major mistake mostly wrong;
addressed and supporting but left out minor or with clear that
accounting details. supporting details identification, student did not
issues estimation, or know how to
proper accounting conceptualize or
approach
problem.
Standards Identified and Identified and At least one major Many mistakes
and Rules assessed all assessed most omission when when identifying
relevant standards relevant standards identifying and and assessing
and rules and rules; made assessing relevant relevant
minor mistakes standards and standards and
rules rules
Measurement Used the most Used acceptable Made one or more Failed to identify
and relevant and reliable and relevant major mistakes or use reliable
Disclosures reliable measurement and per relevant and measurement
measurement and disclosure criteria; reliable and disclosure
disclosure criteria minor mistakes or measurement and criteria
omissions disclosure criteria
Logical Completely and Acceptable job of Major omissions Was mostly or
Inference correctly analogized analogizing from when analogizing completely
from existing rules existing rules to from existing unable to
to situations not situations not rules to situations analogize from
explicitly addressed explicitly addressed not explicitly existing rules to
by current by standards and addressed by situations not
standards or authoritative standards and covered by
authoritative sources; left out authoritative standards and
sources. some details or sources authoritative
reasoning. sources

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3

Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Learning Resources

• Cabrera, Ma. Elenita; Ocampo, Reynaldo (2019) Conceptual Framework and Accounting
Standards,Manila: GIC Enterprises & Co., Inc
• MIllan, Zeus Vernon B (2019). Conceptual Framework & Accounting Standards.
Bandolin Enterprise.
• Millan, Zeus Vernon B (2019).Intermediate Accounting Volume 3. Bandolin Enterprise.
• Robles. N. and Empleo, P. (2019) Intermediate Accounting Volume 3. Mutual Books, Inc.
• Valix, C. & Valix, C. (2018).Financial Accounting Volume 3. Manila: GIC Enterprises & Co.,
Inc.
• Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards
(PFRS) issued by FRSC.
• International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS) issued by IASB.
• SIC and IFRIC issued by IASC and IASB
• PIC Questions and Answers prepared by PIC and approved by FRSC
• www.iasplus.com

This module is for educational purpose only. Under section 185 of R.A. 8293, which states,
“The fair use of a copyrighted work for criticism, comment, news reporting, teaching
including multiple copies for classroom use, scholarship, research, and similar purposes is
not an infringement of copyright”. The unauthorized reproduction, use and dissemination
of this module, without joint consent of the authors and LSPU, is strictly prohibited and
shall be prosecuted to the full extent of the law, including appropriate administrative
sanctions, civil and criminal.

LSPU SELF-PACED LEARNING MODULE: INTERMEDIATE ACCOUNTING 3