Comprehensive income is a term used in accounting to refer to the total amount of a company’s income. This includes both operational and non-operational income, as well as any gains or losses. Comprehensive income is often reported on a company’s financial statements alongside other measures such as net income or operating income.
While accounting standards vary from country to country, in general comprehensive income provides a more complete picture of a company’s overall financial performance. This is because it includes items such as capital gains or losses that may not be included in other measures of income. For example, net income only includes operational income and excludes any gains or losses from investments or other non-operational activities.
Comprehensive income can also be referred to as “total comprehensive income” or “TCI.”