Ounalashka Corp - The Eider Pointer Newsletter_September2019 | Page 4

NEW GAAP RULE
WHAT IT MEANS TO
OC SHAREHOLDERS
The Ounalashka Corporation has a healthy, and substantial, investment
portfolio. It’s made up of a variety of investments, including equity market
and fixed-income securities whose values change based on the market
any given day.
A new rule announced effective in 2019 by the Financial Accounting
Standards Board (FASB) has changed Generally Accepted Accounting
Principles (GAAP). GAAP are the standard by which OC reports its
financial performance to our shareholders. The new rule now requires
that unrealized gains/losses (net of tax) be reported on the Income
Statement. Previously, OC reported unrealized gains in the Statement of
Comprehensive Income.
While it will not affect total shareholder value -- retained earnings -- OC
wants to make sure shareholders understand the differences in reporting
for the coming year. The board and management were aware of and have
prepared for the change.
It’s vital for shareholders to understand their corporation’s financial
documents and reports. OC is dedicated to transparency with its owners,
and to ensuring the future of your corporation. Questions about the
GAAP change? Contact OC at 907.581.1276.
What are unrealized and
realized gains?
An unrealized gain is a profit
that exists on paper, resulting
from holding an investment
whose market price has
increased after initial purchase.
A gain becomes realized
once the position is closed
for a profit.
What are unrealized and
realize losses?
An unrealized loss is a loss
that results from holding
investments whose market
price has decreased since
purchased. A realized loss is the
loss that is recognized when
assets are sold for a price lower
than the original purchase price.
2014 2015 2016 2017 2018
3,595,000 3,747,800 3,117,900 12,282,900 5,351,900
14,100 (739,400) 899,500 531,200 (1,262,200)
Adjusted Net Income 3,609,100 3,008,400 4,017,400 12,814,100 4,089,700
Retained Earnings 39,519,100 41,168,800 43,310,100 37,261,700 36,524,900
Accumulatedn Other Comprehensive Income 2,934,300 2,194,900 3,094,400 3,625,600 2,363,300
Retained Earnings & AOCY 42,453,400 43,363,700 46,404,500 40,887,300 38,888,200
Modified - Retained Earnings 42,453,400 43,363,700 46,404,500 40,887,300 38,888,200
Net Income per Financial Statements
Unrealized Gain/ (Loss) net of tax
Accounting Standards Board Standards require change in unrealized gains or losses (net of tax) be recognized on the Incime
Statement and elimination of Accumulated Comprehensive Income by reclassification to Retained Earnings for 2019 and thereafter.
These changes have been previously reported on the statement of Comprehensive Income and will now be reported on
the Income Statement.
4 OC’S SEPTEMBER 2019 NEWSLETTER