Which of the following items is EXCLUDED from Other Comprehensive Income (OCI)?

Answer options:

Pension prior service cost adjustments

Unrealized gains on available-for-sale debt securities

Foreign currency translation adjustments

Unrealized gains on equity securities

How to approach this question

Recall the mnemonic 'PUFI' for OCI: Pension adjustments, Unrealized G/L on AFS debt, Foreign currency items, Instrument-specific credit risk. Equity securities go to Net Income.

Full Answer

D.Unrealized gains on equity securities✓ Correct

Unrealized gains/losses on equity securities are recognized in Net Income, not OCI (unless the equity method or consolidation applies, but for standard fair value holdings, it's NI). The other items are standard OCI components.

Common mistakes

Confusing AFS debt rules with equity rules.

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