Since the OCI items do not affect the net income, they will not cause a change in a corporation's retained earnings. Instead, the current period's OCI items will cause a change in accumulated other comprehensive income, which is another component of stockholders' equity.
Some examples of the items classified as other comprehensive income include:
- Unrealized gains/losses on available-for-sale investments
- Unrealized gains/losses on hedge/derivative financial instruments
- Foreign currency translation adjustments
- Unrealized gains/losses on postretirement benefit plans
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