What ECONOMIC EVENTS can affect EQUITY but NOT INCOME STATEMENT?
...those items which are present in the COMPREHENSIVE INCOME!
COMPREHENSIVE INCOME = NET INCOME + some adjustments like...
... changes that originate from non-owner sources, such as adjustments to the price of holding securities (bonds, stocks... available for sale), foreign currency translation gains or losses, etc.
unrealized gains for, let’s say, a 5k value increase of a participation in another company, affect an asset account and an equity account, like this:
Companies, especially large ones, report these items both in the income
statement, in a separate section (’’other comprehensive income’’) and in the statement of comprehensive income.
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