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

Henry, Elaine

doi:10.1002/jcaf.21726

Cited by 5 publications

(3 citation statements)

References 6 publications

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“…The same option was also removed from the U.S. Generally Accepted Accounting Principles (GAAP) (Eaton, Easterday, Rhodes, 2013). The consensus on two identical options for displaying comprehensive income is one of many steps towards the convergence between IFRS and the U.S. GAAP (Henry, 2011).…”

Section: Research Sample and Methodologymentioning

confidence: 99%

Financial reporting of comprehensive income in the food and beverage sector in the Republic of Serbia

Obradović¹,

Karapavlović²

2017

Ekon Polj

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Section: Research Sample and Methodologymentioning

confidence: 99%

Financial reporting of comprehensive income in the food and beverage sector in the Republic of Serbia

Obradović¹,

Karapavlović²

2017

Ekon Polj

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“…FASB also added a disclosure requirement, whereby entities were required to display reclassification adjustments from comprehensive income to net income on the face of the financial reports (Eaton et al, 2013;Henry, 2011).…”

Section: Overview Of Other Comprehensive Income Presentationmentioning

confidence: 99%

“…Proponents believe that FASB update 2011-05 (FASB, 2011) improved the presentation of OCI items by excluding the third option and those reclassifications adjustments to make clear to financial statement users' certain items that are already included in a previous period's comprehensive income (Casabona & Coville, 2014;Henry, 2011). Researchers argued that FASB update 2011-05 enhanced the transparency in disclosing CI and changes in OCI and increased the importance of OCI items (Schaberl & Victoravich, 2015).…”

Section: Overview Of Other Comprehensive Income Presentationmentioning

confidence: 99%

Comprehensive income disclosure (the case of US companies)

Mahmood

2019

Cogent Economics & Finance

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The purpose of this paper is to examine alternative reporting formats of comprehensive income (CI) information and measures the extent to which losses are being accumulated in other comprehensive income (OCI) in the specific context of two major FASB updates: Summary of Financial Accounting Standard (SFAS) No. 130 and Accounting Standard Update (ASU) 2011-05. Design/ methodology/approach: This paper investigates alternative reporting formats of CI information and its effect on Earnings Per Share (EPS) of 100 top US firms over the 1997-1999 period. The pattern of Other Comprehensive Income (OCI) is then examined using a sub-sample of ten companies with 31 December year ends over the 1995-2014 period. Findings: The results indicate that several firms show OCI items as part of shareholders' equity. On average, the difference between CI and net income is significant for the majority of firms, fluctuating by up to 15% (in absolute terms) over three-years. The negative effect on EPS is significant. For subsample firms, OCI is predominantly negative (i.e., is reported as a loss). Research limitations/implications: The effect of the above findings is that reported earnings generally provide an overly optimistic picture of book values. Conservative book

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Effects of comprehensive income reporting on judgments of non–professional investors

Sajnóg¹

2020

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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This study examines the usefulness of comprehensive income as important information in the financial statements for the purpose of making investment decisions by Polish non-professional investors. The discussed research problem was realised in two parts. The first part depicts mainly theoretical reflections on the concept of comprehensive income and its strengths and weaknesses for investors. The second part outlines the survey results on the usefulness of comprehensive income in the opinions of individual investors which show that respondents assessed comprehensive income (including its components) as important for making investment decisions. At the same time, users of financial statements were quite unanimous that the implementation of comprehensive income to the financial reporting system increased the transparency of information and allowed for more accurate financial analyses of joint stock companies. In many cases, comprehensive income was considered to be a better measure of economic efficiency and market value than 'traditional' net income.

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

Cited by 5 publications

References 6 publications

Financial reporting of comprehensive income in the food and beverage sector in the Republic of Serbia

Financial reporting of comprehensive income in the food and beverage sector in the Republic of Serbia

Comprehensive income disclosure (the case of US companies)

Effects of comprehensive income reporting on judgments of non–professional investors

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