Man, you have no idea how helpful you are! This is wonderful, especially the part about the tax effect of OCI. Everyone always omits the part about taxes. Could you please provide the sources of your knowledge, books or something? Your videos are ultra good and detailed but I would like to be able to receive such good info on any little part of accounting. If I were not broke, I would try to support you!) Excellent job!
Thanks for the praise, we appreciate it. I have a masters in accounting and CPA, but honestly I have to google everything to check my knowledge is accurate. The Big 4 (PWC, KPMG, EY, Deloitte) all have guides you can find for free on the internet. However, I always just google what I'm looking for and am very specific and there are always examples "Other Comprehensive Income with Journal Entries" or something like that
Very similar topics. OCI is built for specific types of transactions, and those that do not fit into that will fall under unrealized (other income). These forex gains are probably for operating transactions that are really just timing differences.
How is investment a debit to investment as we have invested to the investment section should increase? And why is it credited to cash,as its and investment and not in cash form? ( Im sorry if its a silly question)
Thanks for commenting. The concept is similar to the example within except you are adjusting the FV of the liability of your pension (defined benefit plan). So that FV change is written to OCI until realized. A simple example of entries can be found here: corporatefinanceinstitute.com/resources/knowledge/accounting/pension-accounting/
Regarding the last topic of deferred taxes: In the accounting record - debit to Dr. R/E and credit to Cr. Accum. OCI - there should be a value of $400 instead of $100, shouldn't there?
In the example I was specifically talking about how deferred taxes move and get booked, but yes there would also be an unrealized gain of $400 that also gets booked for the total $500 gain.
@@accountingacademy4064why is the last entry for deferred taxes needed of Debit R/E and Credit AOCI of $500? Isn’t that already done by accounting? Now there’s a total debit to R/E of $1k when the asset is sold… ?
Man OCI is always so confusing but your video makes it easy - Great explanations trying to make it simple to understand.
Very crisp and clear. Really liked the way you explianed through entries
Man, you have no idea how helpful you are! This is wonderful, especially the part about the tax effect of OCI. Everyone always omits the part about taxes. Could you please provide the sources of your knowledge, books or something? Your videos are ultra good and detailed but I would like to be able to receive such good info on any little part of accounting. If I were not broke, I would try to support you!) Excellent job!
Thanks for the praise, we appreciate it. I have a masters in accounting and CPA, but honestly I have to google everything to check my knowledge is accurate. The Big 4 (PWC, KPMG, EY, Deloitte) all have guides you can find for free on the internet. However, I always just google what I'm looking for and am very specific and there are always examples "Other Comprehensive Income with Journal Entries" or something like that
agreee
Very well explained with accounting entry. Thanks
Glad you liked it. Thanks for the positive feedback
Great video man. You should have way more views and followers
THANK YOU SO MUCH. ❤❤❤❤❤
finally i can move on.
Great video!
Hi, I like your video.
May I ask, what's the difference between unrealized forex/gain, which is recorded as non-operating expense, and OCI?
Very similar topics. OCI is built for specific types of transactions, and those that do not fit into that will fall under unrealized (other income). These forex gains are probably for operating transactions that are really just timing differences.
@@accountingacademy4064 Thank you!
Great 🔥
How is investment a debit to investment as we have invested to the investment section should increase? And why is it credited to cash,as its and investment and not in cash form? ( Im sorry if its a silly question)
When you buy the investment you are using cash. So the decrease in cash is a credit. The increase in investment is a debit. Hope that helps.
MANY thanks :-)
Can you please give example for defined benefit plan sir
Thanks for commenting. The concept is similar to the example within except you are adjusting the FV of the liability of your pension (defined benefit plan). So that FV change is written to OCI until realized. A simple example of entries can be found here: corporatefinanceinstitute.com/resources/knowledge/accounting/pension-accounting/
Grt video ,but bgm is annoying as this is kinda of informative video where u need to be focused.
Yeah this one was requested and is a very broad topic, agreed. A few of the other videos are simpler breakdowns of a topic.
Regarding the last topic of deferred taxes: In the accounting record - debit to Dr. R/E and credit to Cr. Accum. OCI - there should be a value of $400 instead of $100, shouldn't there?
In the example I was specifically talking about how deferred taxes move and get booked, but yes there would also be an unrealized gain of $400 that also gets booked for the total $500 gain.
I think entry is wrong.... Last entry in deferred tax was to be Acc OCI Dr R/E cr
@@accountingacademy4064why is the last entry for deferred taxes needed of Debit R/E and Credit AOCI of $500? Isn’t that already done by accounting? Now there’s a total debit to R/E of $1k when the asset is sold… ?
Great video!
thanks so much