What does other comprehensive income mean on the CPA exam?
Other comprehensive income. Gains and losses that bypass net income and sit in equity until realized, such as unrealized gains on available-for-sale debt securities and foreign currency translation.
Defined against ASC 220-10-45-10A.
Which CPA exam sections use other comprehensive income?
Other comprehensive income appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
Other terms defined against ASC 220-10
- income statement: The statement of what was earned and spent over a period, ending in net income.
- net income: What is left after every revenue and expense of the period, including tax and discontinued operations.
- net of tax: Stated after the tax effect has been taken out.
Other names for other comprehensive income
OCI
Related terms
- capital gain net income: Capital gains minus capital losses for the year, long-term and short-term combined.
- functional currency: The currency of the main economic environment in which an entity operates, which is usually where it generates and spends cash.
- net investment income: Interest, dividends, capital gains, rents, royalties and income from passive businesses, less the deductions allocable to them.
- passive income: Income from an activity the taxpayer does not materially participate in, plus most rental income.
- earned income: Compensation for personal services -- wages, or net earnings from self-employment.
- gross income: All income from whatever source derived, unless the Code specifically excludes it.