What are the differences between comprehensive income and other comprehensive income?


In the financial statements, the corporate income tax is broken in many ways, and firms have some freedom when you know about their income. To compensate for this, the Council on financial accounting standards (FASB) there are firms that collect and provide information that helps to provide perspective to investors and analysts. Two such measurements comprehensive income and other comprehensive income.

Comprehensive Income

Gross income is used to determine changes in the interests of the owner in the business. This is done by charting the changes in the net assets of the company with shareholders of the group, including all income and costs that typically bypass the statement of profit and loss as they have not yet been implemented. Gross income is usually reported in a separate statement than the income, which includes changes in owner equity. Comprehensive income is calculated by adding net income, the sum of recognized income minus the amount of recognised costs, other comprehensive income.

Other Comprehensive Income

Other comprehensive income-all for all items that cannot be included in a typical profit and loss calculations. Examples of the types of changes captured other comprehensive income include:

  • Gains and losses on derivative financial instruments
  • Debt security unrealized gains and losses
  • Pension or other retirement plan profit and loss
  • Foreign currency transaction adjustments
  • Available-for-sale securities unrealized gains and losses

These items are fairly rare and small enterprises and other comprehensive income, the most important for the assessment of large corporations. Watching the unrealised investment portfolio of the company can reveal the possibility of large losses on the road. You can see how foreign operations and currency hedging affects corporate performance, for example.

Comprehensive income and other comprehensive income to help bring complex financial statements into clear view.

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