Accumulated other comprehensive income (OCI) includes unrealized gains and losses, which are reflected in the equity section of the balance sheet.
An unrealized gain or loss occurs when the fair value of an investment, pension plan or hedging transaction has increased or depreciated but the sale has not yet taken place to capture the profit or loss.
Accumulated other comprehensive income is shown on the balance sheet in some cases to alert users of financial statements that a profit or loss may be realized in the income statement in the future.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.