Hi fellow forummers,
This is an accounting question. Maybe those with accounting background know better.
I have been using net income for assessing company performance all this while for the sake of convenience. The data providers provide net income, not comprehensive income. I was wondering if it might be better to use comprehensive income. Comprehensive income includes unrealized gains/losses that have yet to be realized in the net income statement. Some examples are forex translation, unrealized gains/losses in investment assets etc. When we assess our own investment performance at the end of the year, we don't ignore unrealized gains/losses, right?
As investors, may I know what is your preference (comprehensive income or net income)? Or you don't care? Or don't know?
This is an accounting question. Maybe those with accounting background know better.
I have been using net income for assessing company performance all this while for the sake of convenience. The data providers provide net income, not comprehensive income. I was wondering if it might be better to use comprehensive income. Comprehensive income includes unrealized gains/losses that have yet to be realized in the net income statement. Some examples are forex translation, unrealized gains/losses in investment assets etc. When we assess our own investment performance at the end of the year, we don't ignore unrealized gains/losses, right?
As investors, may I know what is your preference (comprehensive income or net income)? Or you don't care? Or don't know?
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Trust yourself only with your money
Trust yourself only with your money