Other comprehensive income is those revenues, expenses, gains, and losses are excluded from net income after net income on the income statement. Under both Generally Accepted Accounting Principles and International Financial Reporting Standards that
Revenues, expenses, gains, and losses appear in other comprehensive income when they have not yet been realized. For example, if your company has invested in bonds, and the value of those bonds changes, you recognize the difference as a gain or loss in other comprehensive income. When you sell the bonds, you could recognize the gain or loss associated with the bonds and can reclassify the gain or loss out of other comprehensive income and into a line income statement.
Examples of items that may be classified in other comprehensive income are:
- Unrealized holding gains or holding losses on investments that are classified as available for sale
- Foreign currency translation gains or losses
- Pension plan gains or losses
- Pension prior service costs or credits
Other comprehensive income is designed to give the reader of a company's financial statements a more comprehensive view of the financial status of the entity. Total comprehensive income is the combination of profit or loss and other comprehensive income.
留言列表
