Final answer:
The components of comprehensive income can be reported either in a single continuous statement or in two separate statements. This includes items such as unrealized gains or losses that go directly to equity.
Step-by-step explanation:
The components of comprehensive income created during the reporting period can be reported in one of two ways according to the accounting standards. They can be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements, where one is the income statement showing net income, followed by a statement of other comprehensive income. Components of comprehensive income include revenues, expenses, gains, and losses that are not included in net income but instead are reported directly to equity through other comprehensive income. This might include items such as unrealized gains or losses on available-for-sale financial assets, foreign currency translation adjustments, and adjustments for pension plans.