The following information is from a company's accounting records:
| € millions | |
| Revenues for the year | 12,500 |
| Total expenses for the year | 10,000 |
| Gains from available-for-sale securities | 1,475 |
| Loss on foreign currency translation adjustments on a foreign subsidiary | 325 |
| Dividends paid | 500 |
The company's total comprehensive income (in € millions) is closest to:
C is correct. Total comprehensive income = Net income + other comprehensive income
Net income = Revenues - Expenses
Other comprehensive income includes gains or losses on available-for-sale securities and translations adjustments on foreign subsidiaries.
(Revenues - Expenses) + Gain on AFS - Loss on FX translation=(12,500 - 10,000) + 1,475 - 325 = 3,650.