Comprehensive income represents the increase in net assets resulting from all transactions occurring during the accounting period except transactions with owners.

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Comprehensive income is a broad measure of a company's overall financial performance and includes all changes in equity during a specified period except those resulting from investments by owners and distributions to owners. It encompasses not only the net income reported on the income statement but also other forms of income that are not realized through day-to-day operations.
The concept of comprehensive income is based on the accounting principle that all financial transactions that affect the value of a company should be reflected in its financial statements. Comprehensive income includes the following components:
1. **Net Income**: This is the profit or loss reported on the income statement, which is calculated as revenues minus expenses, including taxes and interest.
2. **Other Comprehensive Income (OCI)**: These are revenues, expenses, gains, and losses that are excluded from net income on the income statement but are recognized in comprehensive income. OCI typically includes items that have not been realized or are not the result of daily operations, such as:
   - Unrealized gains and losses on available-for-sale securities
   - Foreign currency translation adjustments from foreign operations
   - Adjustments for minimum pension liabilities
   - Unrealized gains and losses on derivatives held as cash flow hedges
Comprehensive income is reported in a company's financial statements in one of two ways:
- In a single continuous financial statement, immediately following the income statement.
- In a separate statement of comprehensive income that begins with net income and then lists the components of other comprehensive income.
The total comprehensive income for the period is the sum of net income and other comprehensive income. This figure provides a more inclusive view of a company's financial performance than net income alone, as it accounts for potential gains and losses that have not yet been realized or are not part of the core business operations.
Transactions with owners, such as issuing new shares, paying dividends, or repurchasing stock, are not included in comprehensive income because they are considered financing activities that do not reflect the company's operational performance. Instead, these owner transactions are recorded directly in the equity section of the balance sheet.

Comprehensive Income Represents the Increase in Net Assets Resulting from All