What Is "Comprehensive Income," and How Does SFAS No

question 27

Essay

What is "comprehensive income," and how does SFAS No. 120 allow it to be reported?

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Definitions:

NCI

Non-Controlling Interest, a stake in a company that is not sufficient to yield control over the company, representing ownership by minority shareholders.

Profit

The financial gain derived from a transaction or the operation of a business after subtracting expenses.

Inter-Entity Transactions

Transactions that occur between two divisions within the same company, often used for the purpose of allocating costs or revenues between those divisions.

NCI Adjustment

Adjustments made to account for the non-controlling interest's share in the equity of a subsidiary.