Statement of Comprehensive IncomeThe statement of comprehensive income should be presented immediately after the income statement. (However, it could be combined with the income statement.) The term comprehensive income consists of 1) a corporation's net income (which is detailed on the corporation's income statement), and 2) a few additional items which make up what is known as other comprehensive income. The items which make up other comprehensive income include:
- Unrealized gains or losses on derivatives used in hedging
- Unrealized gains or losses on pension and postretirement liabilities
- Foreign currency translation adjustments
*Every financial statement should inform the reader that the notes are an integral part of the financial statements and should be read for important information.The adjustments for the items defined as other comprehensive income will be included in the amount of accumulated other comprehensive income, which is reported in the stockholders' equity section of the balance sheet: You can learn more about other comprehensive income by referring to an intermediate accounting textbook.