Comprehensive income is computed by adjusting net income for dirty surplus items.

Question

Quizplus · Accepted Answer

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It includes dirty surplus items such as unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and certain pension adjustments. Therefore, comprehensive income is computed by adjusting net income for these dirty surplus items.

Comprehensive Income Is Computed by Adjusting Net Income for Dirty