[Anonymous]

I am very confused right now. I am watching Roger lecture. I keep hearing him saying: “It goes to comprehensive income on the balance sheet”. I thought comprehensive income is the result of taking net income and factoring in OCI. So, how can comprehensive income be a balance sheet account? We are on the topic of impairment losses, temporary and other than temporary, and also reclassification from TS>AFS, AFS>TS, AFS>HTM, HTM>AFS. And he mentions when you reclassify from HTM to AFS, it is valued at FMV and the gain/loss goes to OCI. But if you are going from AFS to HTM, the FMV gain/loss goes to Comprehensive Income on the balance sheet. I thought Comprehensive is a number resulting from Net income after taxes and factoring it with OCI. Didnt know Comprehensive income is a balance sheet account. Very confusing.

[ScarletKnightCPA]

OCI is closed out to the balance sheet account, Accumulated OCI.

This is much the same way that Net income is closed out to the Balance sheet account, retained earnings.

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[Anonymous]

Yah, I get the OCI part. But Roger is saying it differently. He is saying HTM to AFS goes to OCI on the IS, and AFS to HTM goes to CI on the balance sheet. That is what is confusing me. I understand that there is an accumulated OCI account on the balance sheet and is used of OCI on the Income state to determine Comprehensive Income. I get that. But roger is saying gain/loss from AFS to HTM goes to Comprehensive Income on the balance sheet, and HTM to AFS goes to Other Comprehensive income on the income statement.

[ScarletKnightCPA]

If he is referring to comprehensive income on the balance sheet he probably means accumulated other comprehensive income.

They all eventually end up on Accumulated OCI on the balance sheet.

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[Author]

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