Other comprehensive income
Financial Dictionary — Financial Reporting
Definition
Items not recognized in profit or loss as required by IFRS.
Detailed Explanation
Other comprehensive income (OCI) includes income and expense items that are not recognized in profit or loss as required by IFRS (e.g., revaluation surplus, certain FVOCI changes).
Common Uses
- Used to prepare and present financial statements and disclosures.
- Used when classifying items and explaining accounting impacts to users of the financials.
- Used when classifying items and explaining accounting impacts to users of the financials.
Practical Example
- Example: During financial statement preparation, **Other comprehensive income** guides how information is presented and disclosed.
Why This Term Matters
- Why it matters: Enhances transparency, improves comparability, and reduces misunderstanding by stakeholders.