Question

Why does a company report comprehensive income?

Answer 1

Comprehensive income is the variation in a company's net assets from non-owner sources during a specific period example of such income is Unrealized gains or losses from debt securities.Company report such income as It offers a holistic view of the income that income statement fails to capture by other means and to give clear view to assist the external users such as investors, creditors, and others in assessing an enterprise’s activities such as an enterprise’s future cash flows so that they can take better financial and other decisions.The purpose of such income is to include a total of all operating and financial events that affect non-owners' interests and the owner interests in a business.The company may report such income per month, quarter, or year as per.A single focus on total comprehensive income is likely to result in a limited understanding of an enterprise’s activities.

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