SMU Associate Professor of Accounting (Practice) Pearl Tan commented on how other comprehensive income (OCI) is different from net income, and how SME managers and stakeholders may use the information on other comprehensive income to evaluate the business. She highlighted that it is important for owners and managers of SMEs to understand the components of OCI and commented on how it will affect reported equity and net assets. Stakeholders of an SME may also use the information on OCI to assess risks and to estimate future cash flows from the reported unrealised gains or losses.
Corporate Reporting and Disclosure
TAN, Pearl Hock Neo.
Making Sense of Other Comprehensive Income. (2012). Business Times. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/1039