Views on the integrity of global capital markets
21 April 2015

What is the Relevance of “Other Comprehensive Income”? IASB’s Cooper Explains (Video)

A recently issued CFA Institute report highlights the potentially important role of “other comprehensive income” (OCI) statement line items — debt and equity valuation re-measurements, for example — whilst analyzing bank financial institutions.

In this interview with report author Vincent Papa, PhD, CFA, director of financial reporting policy at CFA Institute, International Accounting Standards Board (IASB) Member Stephen Cooper discusses the evolution of the OCI statement. He also addresses why it warrants investor attention — as was highlighted by IASB Chair Hans Hoogervorst in a speech last year in Japan:

“A very real example of the dangers of relegating unrealised losses to OCI is what happened in the first decade of this century with some big American car manufacturers and airline companies. Their employee benefit schemes had caused huge liabilities to build accumulated OCI. Although unrealised, these deficits were not unreal.”

In the full-length video Cooper also addresses his perspective on the following:

  • Reclassification or recycling of line items from the OCI statement to income statement
  • How the OCI statement fits in with the prospective performance reporting project


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About the Author(s)
Sandy Peters, CPA, CFA

Sandy Peters, CFA, is head of financial reporting policy and serves as spokesperson for CFA Institute to key financial reporting standard setters including the IASB, FASB, and the US Securities and Exchange Commission. She holds the Certified Public Accountant (CPA) designation.

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