Other Comprehensive Income is composed of income and expenses not presented as profit or loss under PFRS. Which statement is true about OCI?

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The main idea is that items recorded in Other Comprehensive Income are changes in value that PFRS does not put directly into the profit or loss for the period. This keeps the profit or loss figure focused on the entity’s core performance, while still capturing broader changes in the entity’s financial position in equity through OCI. OCI collects unrealized gains and losses such as foreign currency translation differences, certain actuarial gains and losses on defined benefit plans, and the effective portions of gains or losses on cash flow hedges, among other items. Some OCI amounts can later be reclassified into profit or loss when the related transaction affects earnings, but many stay in equity until that reclassification occurs. This is why the statement is true: OCI is specifically for income and expenses not presented in profit or loss under PFRS, rather than replacing net income, being limited to cash flows, or being ignored.