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Comprehensive income

Net income plus gains and losses that bypass the income statement, such as currency translation and certain pension and hedge marks.

These items accumulate in accumulated-other-comprehensive-income inside shareholders-equity. They are real changes in wealth that never touched eps, which is why equity can move by more than profit in a year.

For an international company with volatile currency exposure, the gap can be large, and it is a reminder that book equity is not a clean running total of past profit.

Example: Northwind earns $99M but a stronger home currency produces a $34M translation loss. Comprehensive income is $65M, so equity grows $34M less than net income alone would suggest.

Related: net-income

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