The statement of shareholders' equity reports the effects from the recognition or valuation of certain asset or liability transactions that change Accumulated Other Comprehensive Income.

Question

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The statement of shareholders' equity includes changes in Accumulated Other Comprehensive Income (AOCI), which reflects adjustments from items such as foreign currency translation adjustments, unrealized gains and losses on certain types of investments, and pension plan gains and losses, among others. These items are recognized in AOCI until they are realized, at which point they affect net income.

The Statement of Shareholders' Equity Reports the Effects from the Recognition