I would like to make sure my understanding is correct. Other comprehensive income is a line item in balance sheet under stock holder equity. The equation is Comprehensive income = net income + Other comprehensive income. Other comprehensive income line item includes, 1.hedges, 2. gain/loss on available for sale securities, 3.minimum pension liability 4. currency adjustments for all current method (CTA) For simple scenario, if there is gain of $500 on Available for securities and other comprehensive income is shown as $500 on stock holder equity site and available for sale securities is adjusted to market value on assets side Am I correct to understand concepts?
other comprehensive income consists of gains that are not on the income statement
And it’s the changes in the 1-4 you listed added to NI
Anyone know how changes to comprehensive income effect the residual income model? 