When we open any company’s financial statements, we often look for one figure: net income. If the number is high, we assume the company performed well; if it is low, we expect there may be cause for concern.

But what if another figure affects the overall picture of a company’s performance without appearing in net income?

That’s where Other Comprehensive Income (OCI) comes in.

What lies beyond net income?

To understand the concept, we can look at the financial statements of Saudi Aramco. In 2025, the company reported net income of SAR 350.2 billion, while other comprehensive income was SAR 6.5 billion, bringing total comprehensive income to SAR 356.7 billion.

But where did this difference come from?

Other comprehensive income includes certain types of gains and losses that are not recognized in net income, in accordance with accounting standards.

What can be included in other comprehensive income?

To simplify the idea, imagine a company has an investment in a foreign company and the investment’s value rises during the year. This may result in a fair value gain, but depending on the nature of the financial instrument and its accounting classification, the change may be reported in other comprehensive income rather than net income.

Another example: if a company has operations in another country, a change in the exchange rate may result in differences when the financial statements are translated into the presentation currency. These differences may appear in other comprehensive income.

Other examples include certain gains and losses on employee benefit plans, as well as some gains or losses arising from hedges, depending on the nature of the transaction and the requirements of accounting standards.

Put simply, something may affect a company’s equity without directly flowing through net income; in that case, it may appear in Other Comprehensive Income (OCI).

Why is it separated from net income?

Because accounting does not treat all gains and losses in the same way.

Some items represent specific changes in value or financial position, so they are reported in other comprehensive income rather than being included directly in net income.

Under IAS 1, other comprehensive income includes income and expense items that are not recognized in profit or loss under IFRS standards.

So the relationship can be simplified as follows:

Net income + other comprehensive income = comprehensive income

Does this mean there are “hidden profits”?

Not necessarily.

Other comprehensive income is not a pool for profits the company does not want to show. Rather, it is an accounting treatment for specific items, each with its own rules for recognition and presentation.

This means a company may report high net income while also recording positive or negative other comprehensive income, depending on the changes recorded in items subject to this treatment.

Why does this figure matter?

Because looking at net income alone may not be enough to understand the full picture of the changes that occurred during the period.

In Aramco’s case, for example, the difference between net income of SAR 350.2 billion and comprehensive income of SAR 356.7 billion was not just a different way of writing the numbers. It resulted from specific accounting items reported in other comprehensive income.

So the next time we read financial statements, it may be worth looking beyond net income alone.

Sometimes, the accounting story doesn’t end with the first number we see.