Final answer:
OCI items are presented net of tax in financial statements, showing the potential impact on equity if realized, and this reflects true reporting practice.
Step-by-step explanation:
The statement that components of Other Comprehensive Income (OCI) must be reported net of tax is true. OCI includes items that have not yet been realized as gains or losses in the net income but are recognized in equity, such as unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and pension plan gains or losses. These items are presented in the financial statements net of their associated tax effects to reflect the amount that would potentially impact equity if realized.