Comprehensive Income and Reclassification Adjustment Explained

[@SalK-3S3K]

So, the UR gains of 25 K’s, held in OCI, were not re-classified to P&L but adjusted vs investment. How will re-class occur? Do we present the realised gain of 25 k’s as re-class from OCI?

[@Tom-nn5wd]

When you sell the asset you make the following entry. Dr. Cash Cr. Gain Cr. Investment. The gain will then go on the balance sheet. All the reclass does is move the 25k gain out of AOCI since it has been realized. This way equity only goes up by 25k and not 50k