All elements of OCI must eventually be recycled to the income statement.

Question

Quizplus · Accepted Answer

Not all elements of Other Comprehensive Income (OCI) are recycled to the income statement. Some components, like unrealized gains or losses on available-for-sale securities, can be recycled upon realization, but others, such as actuarial gains or losses on defined benefit pension plans, are not recycled but rather reclassified directly to retained earnings.

All Elements of OCI Must Eventually Be Recycled to the Income