Earnings and comprehensive income have the same broad components - revenues, expenses, gains and loses - but are not the same because certain classes of gains and losses are included in comprehensive income but are excluded from earnings. Those items fall into two classes that are illustrated by certain present practices:
a) Effects of certain accounting adjustments of earlier periods that are recognized in the period, such as the principal example in present practice - cumulative effects of changes in accounting principles - which are included in present net income but are excluded from earnings set forth in in this statement.
b) Certain other changes in net assets (principally certain holding gains and losses) that are recognized in the period, such as some changes in market values of investments in marketable equity securities classified as non-current assets, some changes in market values of investments in industries having specialized accounting needs.
My Hometown CPAs - Blog
Read advice submitted by local firms and find CPAs and accountants by metro area and US region.
A Taxing Matter Blog
Anthony G Adams
Kay Bell Texas
Grumpy Old Accountants