Comprehensive income
Comprehensive income is the total change in equity from non-owner transactions during a period, combining net income with other comprehensive income items such as revaluation gains and foreign-currency translation differences.
See it move
Total comprehensive income equals net income plus other comprehensive income. Net income captures ordinary trading profit through the income statement, while other comprehensive income holds gains and losses that bypass it entirely — a revaluation surplus on land, or a foreign subsidiary's currency translation difference — yet still change the value of shareholders' equity during the period.
The formula
Variables
- Net income (profit for the period per the income statement) (€)
- Other comprehensive income (gains and losses that bypass the income statement, such as revaluation surpluses and foreign-currency translation differences) (€)
Captures the full change in equity from non-owner transactions; OCI items are often temporary or unrealised and may recycle to profit or loss in later periods.