A financial statement that displays the components of other comprehensive income (OCI) in a “second” statement that is presented in addition to the income statement (SOI) in order to reach at an entity’s comprehensive income. Differently stated, this involves the process of reporting comprehensive income in a separate statement. The two-statement format begins with the income statement and its bottom line (net income) and moves on to use net income as a balance to be adjusted for other comprehensive income (OCI) such as unrealized holdings gains, net of taxes. Let us suppose that net income was reported at U$100k and that after-tax holdings gains stood at $20k:

Comprehensive income = net income + OCI

Comprehensive income = 100k + 20k = 120k

Or in a statement format:

Net income 100k

Comprehensive income 20k

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Other comprehensive income 120k

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The above statement is the second income statement that treats OCI gains and losses as ordinary gains and losses identified in the traditional income statement.