Definition of Accumulated Other Comprehensive Income
Accumulated other comprehensive income is a separate line within the stockholders’ equity section of the balance sheet. The amount reported is the net cumulative amount of the items that have been reported as other comprehensive income on each period’s statement of comprehensive income.
It is similar to the amount of retained earnings which is the net cumulative amount of the items reported on each period’s income statement.
Examples of Accumulated Other Comprehensive Income
Some items that make up the amount of accumulated other comprehensive income include the following:
- Unrealized gains/losses on hedge/derivative financial instruments
- Foreign currency translation adjustments
- Unrealized gains/losses on postretirement benefit plans
