CFA Level I · CFA Level I Exam · Analyzing Balance Sheets
A company's accumulated other comprehensive income (AOCI) most likely includes:
AOCI most likely includes unrealised gains on financial assets measured at fair value through other comprehensive income. Dividends affect retained earnings and share issue proceeds affect contributed capital, so neither belongs in accumulated other comprehensive income.
- ACash dividends declared to shareholders
- BProceeds from issuing new ordinary shares
- CUnrealised gains on financial assets measured at fair value through other comprehensive incomeCorrect
Explanation
Other comprehensive income captures gains and losses that bypass profit or loss, such as fair value changes on FVOCI assets, foreign currency translation and certain remeasurements. Dividends reduce retained earnings and share issuance increases paid-in capital.
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