For insurance companies,unrealized gains and losses,not recognized on the income statement,will be recorded in the account accumulated other comprehensive income.

Question

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Unrealized gains and losses that are not recognized on the income statement are recorded in the account "accumulated other comprehensive income" (AOCI), which is a component of shareholders' equity on the balance sheet. This allows the company to acknowledge changes in the value of certain assets or liabilities without affecting net income until those gains or losses are realized.

For Insurance Companies,unrealized Gains and Losses,not Recognized on the Income