Comprehensive income is the total change in equity during a period from transactions and events other than those with shareholders, including net income plus other comprehensive income (OCI) items. OCI captures value changes not yet realised through the income statement: unrealised gains and losses on financial instruments at fair value through OCI, currency translation differences on foreign operations, actuarial gains and losses on pension obligations, and cash flow hedge reserves. In financial due diligence, OCI items are analysed separately from operating performance as they reflect balance sheet volatility without cash impact.

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Example: a Swiss group with CHF 15.0 million net income reports total comprehensive income of CHF 12.5 million after a CHF 2.5 million negative OCI impact from actuarial losses on a defined benefit pension scheme. This OCI item reduces equity but does not affect operating cash flow — an important distinction for the working capital and debt bridge in the transaction.

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Hectelion analyses OCI components to isolate operating performance from balance sheet volatility in financial due diligence and valuation engagements.