Answer
"The current operating performance income statement" focuses on the ordinary elements relating to revenues and expenses. Infrequent elements are ignored because they reflect an entity's earning potential for the long haul.
"The modified all-inclusive income statement" incorporates many items when computing net income. Therefore, unusual items, Earnings per share, discontinued activities and non-controlling interests are considered when computing the net income. The items are highlighted to help users to forecast an entity's earning power for the long haul.
Work Step by Step
"The current operating performance income statement" focuses on the ordinary elements relating to revenues and expenses. Infrequent elements are ignored because they reflect an entity's earning potential for the long haul.
"The modified all-inclusive income statement" incorporates many items when computing net income. Therefore, unusual items, Earnings per share, discontinued activities and non-controlling interests are considered when computing the net income. The items are highlighted to help users to forecast an entity's earning power for the long haul.
