The first step in preparing an income statement is to choose the reporting period your report will cover. Other encumbrances specific to the mortgaged or encumbered property. How Income Statement Structure Content Reveal Earning Performance Income Statement Income Profit And Loss Statement Once you sell the bonds you have then realized the gain or loss associated with the bonds and can then shift the gain or loss out of other comprehensive income and into a line item higher in the income statement so that it is a part of net income. . Canceled debts and foreign income are typically reported as other income. Whereas other comprehensive income consists of all unrealized gains and losses on assets that are not reflected in the income. Family sizes in excess of 8 persons are calculated by adding 8 of the four-person income limit for each additional family member. Most of the information needed to prepare an income statement ca