ECONOMICS

Detailed explanation-1: -A statement of comprehensive income, which covers the same time period as the income statement, reflects net income as well as other comprehensive income, the latter being unrealized gains and losses on assets that aren’t shown on the income statement.

Detailed explanation-2: -What is the Statement of Comprehensive Income? The statement of comprehensive income contains those revenue and expense items that have not yet been realized. It accompanies an organization’s income statement, and is intended to present a more complete picture of the financial results of a business.

Detailed explanation-3: -When preparing financial statements, it is important to realize that other comprehensive income cannot be reported on the income statement as dictated by accounting standards. Other comprehensive income is accumulated and then reported under shareholder’s equity on the balance sheet.

Detailed explanation-4: -The statement of comprehensive income reports the change in net equity of a business enterprise over a given period. The statement of retained earnings includes two key parts: net income, and other comprehensive income, which incorporates the items excluded from the income statement.

Detailed explanation-5: -A statement of comprehensive income is the overall income statement that consolidates the standard income statement, which gives details about the repetitive operations of the company, and other comprehensive income. Thus, it is excluded and shown after the net income.