Current NASDAQ Corporation Methods of Reporting Comprehensive Income

Abstract

Statement of Financial Accounting Standard No. 130 (SFAS 130) was released in 1997 which required publicly traded companies to separately report comprehensive income in the financial statements. SFAS 130 prescribed three alternative formats for the presentation without mandating any one specific format. SFAS 130 also required certain details of comprehensive income to be displayed prominently in the financial statements. The current study examined the presentation of comprehensive income by a sample of companies traded on the NASDAQ market to determine the predominant method of presentation among these companies, five years after SFAS 130 became effective. Results of the examination of one hundred annual reports showed that a majority of the sampled companies used the third approach, which was to present comprehensive income as part of the Statement of Stockholders’ Equity, as against the first two approaches that favored presentation of comprehensive income on the face of the Income Statement or in a separate statement. Further, the paper also discusses some ancillary findings pertaining to the presentation of the details of comprehensive income.

Resultado global y dimensión empresarial para cotizadas europeas en NYSE y NASDAQ

“…Por otra parte se observa al revisar la literatura empírica sobre el resultado global en el panorama internacional de los últimos años, se observa que un conjunto de estudios de naturaleza descriptiva, se ocuparon de analizar cómo incide el resultado global en las empresas frente al más tradicional resultado neto (Luecke y Meeting, 1998;Bhamornsiri y Wiggins, 2001;Pandit et al, 2006;entre otros).…”

Presentation of comprehensive income: Another (small) step toward convergence

“…For example, in one sample of 100 annual reports by Nasdaq companies, 87 presented comprehensive income in the statement of stockholders' equity. 13 Why do companies choose to report comprehensive income in the equity statement rather than a performance statement? Some research suggests that managers are more motivated to report comprehensive income in an equity (rather than performance) statement when their compensation comprises more equitybased incentives or when they have less job security.…”

Empirical Evaluation Of The Overall Impact And By Industries Of Comprehensive Income On European Groups Listed On NYSE And NASDAQ

“…We have a set of descriptive-informative papers (Beale and Davey, 1997;Luecke and Meeting, 1998;Bhamornsiri and Wiggins, 2001;Porco, 2004, quoted in Hunton et at. 2006;Pandit, Rubenfield and Phillips, 2006; among others), a series of studies aimed at evaluating the impact of Comprehensive Income presentation formats on users, especially investors and analysts (Hirst and Hopkins, 1998;Maines and McDaniel, 2000;and Hunton et al, 2006) and a set of studies geared at the capital market (Cheng et al, 1993;Dhaliwal et al, 1999;O'Hanlon and Pope, 1999;Cahan et al, 2000;Wang et al, 2003;and Hodder et al, 2006, among others).…”