OK, this threw me and I don't know which way to answer on the test.
Given a list of PUFE items:
Effective portion of unrealized losses on cash flow hedge derivatives ____ (120,000)
Unrealized losses on marketable securities classified as AFS ______________ (26,000)
Foreign currency translation gain __________________________________________ 40,000
Pension funded status adjustment ___________________________________________ (4,000)
I added them all up and applied “net of tax” to get (77,000). The correct answer was positive 77,000.
The question didn't say anything about negative numbers, but clearly the majority of the value was loss, not income – and when combining this number with net income to get comprehensive income, they REDUCED net income by 77,000.
Hate the idea of getting something wrong because of a nomenclature issue!
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