Comprehensive income under GAAP and IFRS can be reported either in a single continuous statement or as two separate but consecutive statements. The single statement combines net income and other comprehensive income, while in the two-statement approach, these are presented separately.
Under both Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS), comprehensive income can be reported in two ways. The first method is to present comprehensive income in a single continuous statement, which is often referred to as the 'Statement of Comprehensive Income'. In this presentation, net income is displayed first, followed by a section that reports other comprehensive income items. The second method allows for two separate but consecutive statements, where the 'Income Statement' is presented first to report net income and the second statement, referred to as the 'Statement of Other Comprehensive Income', lists the items that are not included in net income, thus arriving at comprehensive income.
Regardless of the method used, it is key for entities to report comprehensive income in a way that enhances the users' understanding of the company's financial performance. The choice between these two presentation methods may depend on the reporting entity's policy or specific jurisdiction requirements.