A separate portion of stockholders' equity that reports certain gains and losses on hedges, foreign currency translations, and pension liabilities that were not part of net income shown on the income statement is _____.
Financial accounting is one of the branches of accounting. It involves the preparation of financial reports and presenting them to intended users such as shareholders. stakeholders utilize financial reports to make important investment decisions. Financial reports should be credible and reliable.
Answer and Explanation:
Answer: Accumulated Other comprehensive income (OCI).
OCI is the portion that reports losses or unrealized gains that are found on the balance sheet?s equity section. Also, OCI includes gains or losses that result from certain investment types, transactions of hedging, and pension plans. OCI is not included in the net income for the reason that the gains or the losses are yet to be realized.
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from Accounting 201: Intermediate Accounting IChapter 12 / Lesson 1