Explore commonly used personal finance terms.
Accumulated Other Comprehensive Income (AOCI) represents the accumulated gains and losses that are excluded from net income but recognized in the equity section of the balance sheet. Examples include foreign currency translation adjustments, unrealized gains and losses on securities, and pension liability adjustments. AOCI provides insight into financial factors that impact equity but are not realized as cash income. Tracking AOCI is important for shareholders, as it affects a company’s net worth and reflects broader financial performance.
