MANAGEMENT

Detailed explanation-1: -Profit or loss is the total of income less expenses, excluding the components of other comprehensive income. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.

Detailed explanation-2: -Comprehensive income is the profit or loss in a company’s investments during a specific time period. Knowing these figures allows a company to measure changes in the businesses it has interests in. These amounts cannot be included on a company’s income statement because the investments are still in play.

Detailed explanation-3: -Comprehensive income includes net income and OCI. OCI consists of revenues, expenses, gains, and losses to be included in comprehensive income but excluded from net income.

Detailed explanation-4: -Other comprehensive income might show how the unrealized performance of a firm’s investment portfolio can reveal the possibility of major losses down the road. Comprehensive income is the sum of regular income and other comprehensive income.

Detailed explanation-5: -There is no difference between income statement and profit and loss. An income statement is often referred to as a P&L. The income statement is also known as statement of income or statement of operations. Now that we’ve answered the question surrounding income statement vs.