What is Other comprehensive income (OCI)?
In short
Other comprehensive income (OCI) is a category of gains and losses that are excluded from net income but included in comprehensive income, and accumulated in a separate component of equity.
Key takeaways
- Common items: unrealized gains and losses on available-for-sale debt securities, foreign currency translation adjustments, certain pension items and effective cash flow hedges.
- Items are reclassified into net income when realized, for example when the securities are sold.
- Comprehensive income may be shown in one continuous statement or two consecutive statements.
Where it's tested
FAR: Conceptual Framework & Financial Statement Presentation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which item would be reported in other comprehensive income rather than net income?