The statement of shareholder's equity reports the effects of Accumulated Other Comprehensive income.

Question

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The statement of shareholders' equity typically includes a section for accumulated other comprehensive income (AOCI), which reports the unrealized gains and losses on certain financial instruments, such as available-for-sale securities and foreign currency translation adjustments. This section shows the cumulative impact of these items on shareholders' equity, but it is important to note that AOCI does not directly affect net income or earnings per share.

The Statement of Shareholder's Equity Reports the Effects of Accumulated