Statement of Comprehensive Income

The proposed change in the comprehension presentation of income statement will bring some major changes as compared to the present format . Firstly , breaking up the profits into different heads like financing , operating and investing will provide detail information pertaining to different areas . This is not the case now where all the income from different heads is clubbed together . Secondly , it will provide valuable information to the shareholders who will be able to identify the earnings from normal course of business which is not possible in the present format . Thirdly , it will help

the investors know about the actual financial position as the operating earnings will determine whether he should invest in the shares of the company or not This is not the case with the present format as it is difficult to identify the operating income and clubbing them with other income over estimates the actual profits . Fourthly , by disclosing the changes in pension plan will make predictions difficult for each quarter which is not possible in the present format as the changes are slowly absorbed Lastly , these changes will reduce the chances of frauds and manipulation as a detailed report will provide all information relating to areas which are critical for their success

The proposed changes will be beneficial to the investor as it will provide them with a detailed report of the business actual earnings This will make it easy for them to decide which company to invest as the operating revenues will help to determine the future...