Reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive Income, defined by SFAC 6, consists of all revenue, expenses, gains and losses of a company during an accounting period from transactions that affect owner's equity. It includes not only income and expenses that are used to measure performance of a company but also other economic transactions that affects financial position, cash flow, and shareholders' equity. However, it excludes transactions of contributions by and distributions to shareholders.
Comprehensive income is a good measure of a company's future cash flows.
This Statement addresses reporting and display only, not recognition, of comprehensive income. Other Comprehensive Income is defined as comprehensive income not included in net income computations in conventional financial accounting. Total comprehensive income recognized in an accounting period is divided into net income and other comprehensive income. Income included in net income computation may be segregated as income from continuing operations, discontinued operations, extraordinary items, and cumulative effects of changes in accounting principles. Other comprehensive income shall be segregated into foreign currency items, minimum pension liability adjustments, and unrealized gain and losses on certain investments in debts and equity securities.