ABSTRACT This paper traces the historical development of Other Comprehensive Income (OCI) and Comprehensive Income (CI), analyzing how this evolution has unfolded. The emphasis is on examination of authoritative pronouncements issued by the AICPA, FASB, and IASB. Following an overview of the development of income measurement in accounting, an analysis of OCI and CI definitions and authoritative literature on these items, this paper focuses on OCI applications from specific standards issued by the FASB and IASB. An additional section of this paper examines assertions from selected contemporary accounting books on this subject. The existence of OCI reflects an inability by standard setters to decide whether financial reporting should reflect historical costs or fair values for a number of arbitrarily-selected assets and liabilities. There are no clear-cut guidelines for determining which accounts should report their unrealized holding gains and losses in net income versus OCI. KEY WORDS Accounting Income, Accumulated Other Comprehensive Income, Fair Valuation, Other Comprehensive Income, Unrealized Holding Gains and Losses

This content is only available as a PDF.
You do not currently have access to this content.