[nikand3]

I’m spending way too much time tying to research this so im hoping someone out there can answer it for me. Im getting conflicting results from multiple study aids. One says to record gains/losses from sale of fixed assets in Other Comprehensive Income (OCI) and another says to record them in Net income under Other revenues and gains (non-operating income).

From what i understand, OCI is in the Comprehensive income statement and not included in Net income, so it seems there is a big difference between the two.

It is especially confusing because in my Gleim book i see G/L on disposal of fixed asset under Other revenues and gains which would lead me to believe it is included in NI. But OCI is presented on an entirely separate statement of comprehensive income, which would mean it’s not included in NI… right…?

I think ultimately its just a matter of different verbiage being used meaning the same thing, but it just doesnt make sense the way its presented.

Thanks!

[monikernc]

Hmmm, some gains and losses are recorded in net income and some in OCI. There are different rules for GAAP and IFRS. i suggest you read the questions very carefully because the concepts you are being asked about in your studies require different treatments.

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[sdguy]

In GAAP, only 4 things go into OCI.
-gain/loss on available for sale securities
-gain/loss on derivatives
-gain/loss on foreign currency translation
-something to do with pensions… I forget this one

Everything else runs through the income statement, including asset dispoal gains/losses.

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[Author]

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