What is total comprehensive income?
Total comprehensive income is calculated by adding net income (loss) and other comprehensive income (loss). Total comprehensive income reflects the change in net assets of the business (which would exclude owners equity).
Net income provides a directional view of the change in a company’s net assets, but under U.S. GAAP, changes in certain types of net assets are not reflected in the income statement. Those changes are reflected in other comprehensive income.
Essentially, total comprehensive income reflects 100% of the gains and losses a business experiences in a given period.
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