In one sentenceGains and losses recognized by the standards that do not go into net profit, such as an asset revaluation surplus; they are shown separately and accumulate in equity.
Simply put
The idea is that some changes in value did not arise from the daily business, so putting them into profit could mislead the reader. That is why they are shown in a separate section after net profit.
Their balance accumulates in equity under a name such as revaluation surplus, and it is not distributed as ordinary profit.
Worked example
A factory uses the revaluation model for its land. The land's carrying amount is 1,000,000 SAR, and a certified valuer appraised it at 1,200,000 SAR.
Value after revaluation1,200,000
Carrying amount before it1,000,000
Dr Land200,000
Cr Revaluation surplus200,000
Other comprehensive income = 1,200,000 − 1,000,000200,000 SAR
Don't confuse it with
Other incomeOther income goes into net profit, while other comprehensive income is shown after it and does not enter it.