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Hello Team,
Comprehensive income, is a more expansive view of income than traditional net income. In fact, it encompasses all changes in equity other than from transactions with owners. So, in addition to net income, comprehensive income includes up to four other changes in equity.
The gains or losses (and other elements of comprehensive income) that occur in the current reporting period, we also report these amounts on accumulative basis in the balance sheet. Comprehensive income includes (a) net income and (b) other comprehensive income. Notice that we report net income that occurs in the current reporting period in the income statement and also report accumulated net income (that hasn’t been distributed as dividends) in the balance sheet as retained earnings. Similarly, we report other comprehensive income as it occurs in the current reporting period and also report accumulated other comprehensive income in the balance sheet.
Regards,
Saiyid
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