Other Comp Income?

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BMiller12

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The book at times casually refers to Other Comprehensive Income as a subsection of equity on the balance sheet. FOr instance, the unrealized gain/loss for available-for-sale assets is said to reside on the balance sheet under OCI. OCI is really on the income statement but accumulated on the balance sheet. Another example, some text says prior service costs for pensions is reported by GAAP in OCI and later amortized.
Is it safe to assume that OCI and Accumulated Other Comprehensive Income are referred to in the same light?
Last question: how does the balance sheet balance with a net pension asset/liability ? Doesn’t this mean that there is either a net asset or liability, so what balances this?
Please help!!!
 
Your first Answer : Comprehensive Income = Net Income + Other Comprehensive Income. (Equation C)
All the charges - which are directly taken to Equity (Bypassing Income Statement - Clean Surplus accounting) are
a) Unrealized Gain/loss from Available to Sale Securities
b) Pension Liability - which does not meet minimum requirement and is amortized
c) FC gain / sale under Temporal Metod for Currency Translation
Second Question Pertaining to Amortization : Reduction in Prior Service Cost through amortization, which is being charged to Income Statement, will reduce Net Income by same amount through same amount increase in other comprehesive income (Equation C above)
Hope, it clarifies.
Regards
KK
 
Krishna, thanks for the help. To clarify, is that a YES to number 1 ? I just want to make sure that when the books refers to somthing bypassing the income statement for OCI, that it’s ok to think of OCI as an equity account - when really it’s accumulated other comprehensive income.
That is the right interpretation, no? When they say something goes to OCI, they’re refering to the equity account on the balance sheet right?
Thanks for your help!
 
Sorry for the late reply. Yes, You are correct in your understanding. Please feel free to ask me - If you want me to drop any further notes on it.
Regards
KK
 
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