[startupcfo]

Not quite getting this. I know it has to do with transactions that are not exclusive to owners, and it has something to do with unrealized gains/losses. I also think it (like dividends) is calculated after taxes and after net income.

1. Let’s say you’re Home Depot and you own stock in a timber company. You’re not “trading” the timber company’s stock, but it does experience growth and loss over time. Would you count those unrealized gains/losses in OCI?

2. Now let’s say you’re an investment bank like Goldman Sachs. You own a lot of shares in a new company like Facebook and you’re trying to sell the inventory of Facebook stock to others. As the Facebook stock gains/loses value, would that go under OCI?

3. Now what about about a capital asset that you use in day to day operations? Pretend you’re a technology firm and you buy your office building for $10M. You are not in the business of buying/selling/investing in real estate. 5 years later, the local real estate market explodes upwards and the office building has gone from 10M to 13M. Would those gains go into OCI?

AUD - 93
BEC - 87
FAR - 77
REG - 77

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Corporate finance leader

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[maki]

1 yes 2 not OCI 3 not OCI under U.S. gaap

Roger CPA

AUD 02/01/16 91
REG 02/27/16 79
BEC 04/16 84
FAR 06/04

[startupcfo]

For #1, does it only work for marketable securities?

AUD - 93
BEC - 87
FAR - 77
REG - 77

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Corporate finance leader

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[Nazim Toksavul]

Greetings!

Comprehensive Income refers to the change in the Equity account.

OCI, Other Comprehensive Income, is Comprehensive income Less Net Income. So any item that effects the Equity account but does not impact Net Income is OCI.

Items categorized as OCI includes:

Unrealized holding gains or 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

FAR: 08/31/2013
AUD: 11/04/2013
REG: 05/28/2014
BEC: 08/19/2014

MBA in progress

[Author]

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