All items in Accumulated Other Comprehensive Income must eventually be recycled to the income statement.

Question

Quizplus · Accepted Answer

Not all items in Accumulated Other Comprehensive Income (AOCI) are recycled to the income statement. Some components, like unrealized gains or losses on available-for-sale securities, are recycled upon realization. However, other components, such as actuarial gains or losses on defined benefit pension plans, may never be recycled to the income statement and are instead reclassified directly to retained earnings upon certain triggering events.

All Items in Accumulated Other Comprehensive Income Must Eventually Be