Comprehensive Income
Comprehensive income is the profit or loss of the investments of a company from non-owner sources.
Updated: November 22, 2023
Comprehensive income is the profit or loss of the investments of a company from non-owner sources. The variations in the net assets of a company from non-owner sources during a specific time period can be measured.
The total of all operating and financial events that affect the interest of non-owners in a business is known as comprehensive income. A holistic view of the income not fully captured on the income statement of a company can be provided.
Financial analysis software is used by companies to monitor the financial performance of their business. It is specifically used by accounting departments to consolidate and compare financial transactions and accounting entries. It can also be used to ensure the accuracy of accounting data to track financial key performance indicators (KPIs) and generate reports for financial compliance purposes.
Standard net income and other comprehensive income are summarized in a statement of comprehensive income. More detailed information with a level of detail is offered that is not provide by a net income statement. Stakeholders will be able to know how a company raises revenue and incurs costs with the statement of comprehensive income. The statement also includes other unrelated costs, such as taxes in addition to the cost of daily operating expenses.
This is also a useful tool for investors as investors carefully evaluate the statement of comprehensive income and income statement before investing in a company. Earnings per share and net profit is displayed and investors get insight into how profitable the business may become.