Which type of items does a comprehensive income statement include that are not reflected in net income?

A comprehensive income statement includes items that reflect all changes in equity during a period, except those resulting from investments by owners and distributions to owners. Unrealized gains and losses are key components of comprehensive income because they arise from changes in the fair value of certain assets and liabilities that have not yet been realized through sale or settlement. These unrealized items capture aspects of economic performance that are not included in net income, which typically focuses only on completed transactions.

When assessing the performance of a company, it’s important to consider these unrealized gains and losses, as they can give a fuller picture of the company’s financial status and future potential. Items like depreciation expenses, cost of goods sold, and tax liabilities are part of the net income calculation and do not reflect changes in equity outside of realized transactions. Therefore, unrealized gains and losses are the primary acknowledgment of changes that occur but are not yet recognized in net income, making them a crucial part of comprehensive income statements.