\"Accumulated other comprehensive income (loss)\": A. is a component of stockhol

Question

"Accumulated other comprehensive income (loss)":

A. is a component of stockholders' equity and reported on the balance sheet.
B. is another name for the cumulative foreign currency translation adjustment.
C. includes a component that adjusts for the effects of treasury stock transactions.
D. is a component of net income and reported on the income statement. (I think it is this one, not positive)

Accumulated other comprehensive income (loss)": O O O is a component of stockholders' equity and reported on the balance sheet. is another name for the cumulative foreign currency translation adjustment includes a component that adjusts for the effects of treasury stock transactions. is a component of net income and reported on the income statement.

Explanation / Answer

Answer is option (A)

Explanation;

As we know that accumulated other comprehensive income (loss) is a part of stockholders’ equity thus it is reported on the balance sheet. So correct option is (A). Accumulated other comprehensive income (loss) does not have relation with income statement thus can not be reported on the income statement.

Accumulated other comprehensive income (loss) is comprises of the followings or we can say that following items lead to accumulated other comprehensive income (loss);

·        Unrealized holding gains or losses on AFS securities

·        Foreign currency translation gains or losses

·        Unrealized gains/losses on hedge & derivative financial instruments

·        Unrealized gains (losses) on post retirement benefit plans etc.

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