Comprehensive Income

Alright. I just wanted to include a short discussion of comprehensive income. Let's check it out real quick. So in general, comprehensive income is going to be beyond the scope of this class. This is something that you learn in maybe your third or fourth accounting class. And I just want to give you on a high level because a lot of books just like to mention it at this point. So comprehensive income, it's going to be your net income plus stuff. I'm gonna say just stuff because comprehensive income is kind of where the weird the way weird things in accounting things that will definitely not talk about in this course they go to comprehensive income. Okay, so it's it's weird things like this unrealized gains and losses on available for sale securities, foreign currency translation adjustments and other even more complicated issues. Aren't you glad that we don't have to go through those topics right now? So that's all I just want you to know. And I just wanted to show you what this looks like. So comprehensive income, it does not affect net income. Okay, remember we have our net income, that's what's shown on the income statement. And then we could show comprehensive income by starting with our net income. Like we do in our example here we start with net income net sales, right? Cost a good soul. That's got your basically your income statement from here to here. This is all income statement, right? That's all your income statement, getting to net income. And then it shows the other weird things, it shows our foreign currency translation, it shows fair values of derivatives, right? The weird things are showing up down there. It's almost like the other comprehensive income. This section is like the trash can of accounting. It's like, oh this is a weird thing, just like shove it in comprehensive income. Okay, so just so you know, comprehensive income, it's like net income, but it includes even more abstract issues as well. Cool. So that's about it. We don't need to dive into any details. Just know the idea of comprehensive income there. Okay, let's go ahead and move on to the next video.