AOCI
Business & Finance abbreviation · Accounting
| Stands for | Accumulated other comprehensive income |
|---|---|
| Categories | Business & Finance |
AOCI stands for Accumulated other comprehensive income, an accounting abbreviation.
Component of shareholders' equity that accumulates the period-by-period OCI items not yet recognized in net income, such as unrealized losses on available-for-sale bonds and currency translation. It can swing sharply when interest rates or exchange rates move.
Example: Rising rates pushed the bank's AOCI to a $6 billion deficit on its available-for-sale bond portfolio.
Usage notes
AOCI drew attention in 2023, when unrealized bond losses at banks such as Silicon Valley Bank highlighted hidden balance-sheet risk. The largest US banks must include most AOCI in regulatory capital, while smaller banks have been allowed to opt out. Under IFRS the equivalent amounts appear in reserves within equity.
Related abbreviations
More accounting abbreviations
- ABC – Activity-based costing
- AFS – Available for sale
- AICPA – American Institute of Certified Public Accountants
- AJE – Adjusting journal entry
- AP – Accounts payable
- AR – Accounts receivable
- ASC – Accounting Standards Codification
- ASU – Accounting Standards Update
- B/S – Balance sheet
- BEP – Break-even point
- BV – Book value
- CECL – Current expected credit losses