FAR OCI · Updated November 2026
Net Income, OCI, and AOCI: What Is the Difference?
Net income and OCI are current-period flows. AOCI stores cumulative OCI in equity.
Net income
Net income contains revenues, expenses, gains, and losses recognized through the ordinary income statement framework.
Other comprehensive income
OCI captures specified items accounting standards require to bypass net income initially, such as certain investment, translation, and hedge effects.
Comprehensive income
Net income + OCI = comprehensive income.
AOCI
Accumulated Other Comprehensive Income is the cumulative equity balance containing applicable OCI items from current and prior periods.
Reclassification
Some OCI amounts can later be reclassified into net income when an applicable triggering event occurs.
The takeaway
OCI is the current-period flow. AOCI is the accumulated balance.
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FAQ
Is OCI the same as retained earnings?
No.
Does OCI affect total equity?
Yes.
Can OCI later enter net income?
Some items can under applicable rules.