Resolved: Other Revenues Item vs other comprehensive Income
(Other Revenues) Item comprises all inflow of financial resources as a result of non-core business activities , and so is the (other comprehensive Income) Item . So , how can i differentiate between them ?
there is a difference between the two items. Other revenue refers to revenue generated from non-operating activities (but this is still a revenue account; there is an inflow of economic benefits to the entity).
Other Comprehensive Income is a separate statement you can find after the Income Statement, which comprises revenue, expenses, gains, and losses which are yet to be realized. In other words, you can think of the Income Statement as the place where realized net income is recorded, while the Other Comprehensive Income is the statement where unrealized net income is recorded.
Examples of unrealized gains and losses:
- Unrealized holding gains or holding losses on available-for-sale investments
- Foreign currency translation gains or losses
- Pension prior service costs
- Pension plan gains or losses
Don't worry if you don't understand the specific items, these refer to advanced topics in accounting. Yet, if interested, you can browse through the Statement of Other Comprehensive Income of any public company and see what it looks like.
Back to your question: Other revenue is a line item in the Income Statement, this is realized other revenue.
Other comprehensive income is a separate statement.
I hope this helps.
The 365 Team
thanks Antoniya . But can u briefly explain what is meant by (unrealized Income) ?
by definition, unrealized gains and losses refer to the increase/decrease in the paper value of assets that you've purchased but not yet sold.
Examples include investment portfolios, pension plans, foreign currency, etc.
Generally, unrealized gains and losses do not affect you until you actually sell the asset and thus “realize” the gain/loss.
This is the reason why these are kept in a separate "bucket" - the Statement of Other Comprehensive Income.
The 365 Team