Section 1: 30–40%1A3
Statement of Comprehensive Income
Comprehensive income captures ALL changes in equity from non-owner transactions — including items that bypass net income entirely. The exam tests which specific items go through OCI vs. net income, how they are presented, and how reclassification adjustments work.
What AICPA Wants You to Know
- 1Define comprehensive income and explain how it relates to net income
- 2List the five OCI items tested on the FAR exam and know where each comes from
- 3Explain accumulated OCI (AOCI) and how it appears on the balance sheet
- 4Describe the two presentation options for comprehensive income
- 5Apply reclassification adjustments to avoid double-counting in comprehensive income