Comprehensive Income and OCI

Financial Accounting Standards and Reporting · 3:55

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Lyrics

[Verse 1]
Net income tells us part the story
But there's more beneath the hood
Comprehensive income shows the glory
Of changes that we understood
Some gains and losses bypass earnings
Go straight to equity instead
These items need our careful learning
To see where companies are led

[Chorus]
Comprehensive income is the key
PUFERD helps us remember what we see
Pensions, Unrealized gains today
Foreign currency that's moved away
Effective hedges, Revaluation too
Debt securities changing value blue
Total comp income shows it all
The bigger picture, standing tall

[Verse 2]
Other Comprehensive Income flows
To accumulated OCI
These items come and these items go
But bypass the income statement high
When pension plans change their funding
Or foreign rates shift up and down
These movements need our understanding
They paint a picture more profound

[Chorus]
Comprehensive income is the key
PUFERD helps us remember what we see
Pensions, Unrealized gains today
Foreign currency that's moved away
Effective hedges, Revaluation too
Debt securities changing value blue
Total comp income shows it all
The bigger picture, standing tall

[Bridge]
Analysts must look beyond
Simple net income alone
OCI reveals the bond
Between risk and what is shown
Volatility hiding there
In equity's quiet space
Smart investors must beware
Of what the statements don't embrace

[Chorus]
Comprehensive income is the key
PUFERD helps us remember what we see
Pensions, Unrealized gains today
Foreign currency that's moved away
Effective hedges, Revaluation too
Debt securities changing value blue
Total comp income shows it all
The bigger picture, standing tall

[Outro]
So when you analyze a firm
Don't stop at earnings per share
Look at OCI to confirm
The risks and rewards hiding there
Comprehensive tells the tale
Of all performance, win or fail

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