Final answer:
The comprehensive income statement can be presented in two ways: the single-statement approach, where income statement and other comprehensive income are in one continuous document, and the two-statement approach, where they are presented in separate, consecutive documents.
Step-by-step explanation:
The comprehensive income statement can be presented in two ways according to financial reporting standards. These two methods are the single-statement approach and the two-statement approach. In the single-statement approach, companies present the comprehensive income within a single continuous statement, also known as the Statement of Comprehensive Income, which combines both the income statement and other comprehensive income into one document. This means items that are not part of the net income, such as foreign currency translation adjustments and unrealized gains or losses on available-for-sale securities, are included directly after the traditional net income components.
On the other hand, the two-statement approach involves presenting the traditional income statement separately as the first statement, followed by a second statement that presents the other comprehensive income items. This second statement begins with net income and adds the items of other comprehensive income to arrive at total comprehensive income.