Statement Of Comprehensive Income Definition

The statement of comprehensive income is a financial statement that reports a company’s total earnings, from both continuing and discontinued operations, as well as any gains and losses that are not included in net income. This statement provides a more complete picture of a company’s financial performance than the income statement alone.

The statement of comprehensive income begins with net income, which is then adjusted for items that are not included in net income but affect comprehensive income. These items include unrealized gains and losses, such as those from investments, and other items that are reported on the balance sheet but not on the income statement.

The bottom line of the statement of comprehensive income is comprehensive income, which is the sum of net income and all other items that affect comprehensive income. Comprehensive income can be either positive or negative, depending on the overall financial performance of the company.