ACCA Financial Reporting (F7) Practice Exam 2026 – Complete Prep Guide

The objective of the Statement of Comprehensive Income is to provide a complete overview of an entity's financial performance during a specific period. This statement not only includes traditional income and expenses, but also incorporates unrealized gains and losses. Such gains and losses arise from revaluations or changes in the fair value of assets and liabilities in line with the applicable financial reporting standards. By including this comprehensive array of financial metrics, the statement offers a broader understanding of how economic events have impacted the entity's overall performance, enabling stakeholders to assess the profitability and overall financial health more effectively.

Other options focus on specific aspects of financial reporting but do not encompass the broader purpose of the Statement of Comprehensive Income. Reporting daily operational expenses does not capture the full range of financial activities that occur within the period. Summarizing the financial position of shareholders is more closely related to the Statement of Financial Position, while disclosing only actual profits achieved ignores other important components that can affect an organization’s financial outlook.