Accumulated Other Comprehensive Income

  

AOCI is kind of the off-balance sheet meter of retained earnings, or shareholder's equity on the balance sheet.

This subset line covers company minority investments in contiguous companies, where that investment is not something actively marked to market, as if it were a publicly traded stock with a liquid buying/selling climate. AOCI also includes pension fund gains and losses, and other goofy, non-core elements of most businesses, like repatriation cost of foreign currencies into good ol' U.S. dollars.

AOCI is not part of the normal earnings report of a company, and this is a good thing because of the "non-core" nature of quasi-off-balance sheet or otherwise types of transactions.

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Finance: What are retained earnings?26 Views

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Finance allah shmoop what are retained earnings You know when

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you eat really salty food and the next day you

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have cankles it's all that water desperately trying Teo get

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youto wiz out the loads of sodium chloride in your

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body That's retained water well retained earnings and i'll sort

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of work the same way you run a plastic cup

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stamping business with catchy little phrases on the cubs Last

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year you had a million bucks in sales and one

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hundred grand in after tax earnings About eighty grand of

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that earnings was in fact cash Why didn't you retain

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in cash one hundred percent of your earnings What happened

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to the twenty grand in cash there How did evaporate

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Well you had to spend cash out of your earnings

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on a cup plunging machine and then cost real cash

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dough You'll amber ties that cost over time now and

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get essentially a tax break because of it meaning you'll

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show lesson earning so you'll pay less in taxes but

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the cash won't change So this year's hundred grand was

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a nice year but last year you had fifty grand

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in cash profits and you had twenty grand in cash

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Profits the year before then and before then you had

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run it just cash flow break even for the previous

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five years So it all looked like that So in

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total you saved Or rather you retained cash earnings of

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eighty plus fifty plus twenty or a sum total of

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one hundred fifty grand That all now sits in your

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b of a account doing a whole lot of nothing

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of intern two percent a year for the privilege that

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one hundred fifty grand that you have cumulatively retained Like

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ankle's swelling is retained earnings which you will now use

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