Final answer:
Other Comprehensive Income (OCI) is a type of account used in financial reporting and is included in the statement of comprehensive income. It includes items of income and expense that are not recognized in the profit and loss statement. OCI does not close out to a specific account but accumulates over time and is reported on the statement of changes in equity.
Step-by-step explanation:
Other Comprehensive Income (OCI) is a type of account used in financial reporting, specifically in relation to the statement of comprehensive income. OCI includes items of income and expense that are not recognized in the profit and loss statement but are instead included in a separate section of the comprehensive income statement. Examples of items that may be included in OCI are unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and changes in the fair value of certain financial instruments.
OCI is not closed out to any specific account. Instead, it accumulates over time and is reported on the statement of changes in equity. It represents comprehensive income, which is the sum of net income and other comprehensive income.