Tech Note: Understanding Other Comprehensive Income Accounts

Other Comprehensive Income (OCI) is part of the total comprehensive income; however, it is excluded from the net income. Transactions that can be recorded as other comprehensive income include, but are not limited to:

• Foreign Currency Translation Adjustment
• Unrealized gains and losses on available-for-sale securities
• Revaluation of Property
• Plant and Equipment
• Tax effects of Other Comprehensive Income

Since these other comprehensive income transactions are not closed to retained earnings, they accumulate as other equity items, commonly called “Accumulated Other Comprehensive Income.”

Article #1339: Understanding Other Comprehensive Income Accounts discusses how the accounts are set up and presented in AccountMate.