Subjectivity in fair-value estimates, audit quality, and informativeness of other comprehensive income

2013 ◽  
Vol 29 (2) ◽  
pp. 218-231 ◽  
Author(s):  
Cheol Lee ◽  
Myung S. Park
Keyword(s):  
Audit Quality ◽  
Fair Value ◽  
Comprehensive Income ◽  
Other Comprehensive Income

scholarly journals THE VALUE RELEVANCE OF INTERNATIONAL ACCOUNTING STANDARD IMPLEMENTATION AND AUDIT QUALITY

2015 ◽  
Vol 3 (3) ◽  
pp. 801
Author(s):  
Hanifa Zulhaimi ◽  
R. Nelly R. Nelly Nur Apandi
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Audit Quality ◽  
Value Relevance ◽  
Balance Sheet ◽  
Fair Value ◽  
International Accounting ◽  
Net Income ◽  
Comprehensive Income ◽  
Other Comprehensive Income

The implementation of international accounting standards in Indonesia has significantly affected financial reporting. It increases information relevance for the investors because a fair value comprehensively represents assets and liabilities of an entity as of the balance sheet date. However, this triggers polemics over the value relevance of International Financial Reporting Standard (IFRS). This can be seen from stock price decline. This study aims to find out the effect of net income and other comprehensive income on stock price and to observe the effect of other comprehensive income moderated by audit quality. Furthermore this study also aims to find out the effect of  the subjectivity of OCI components. Using a sample of 79 companies, the writer analyzes 2014 financial statements derived from Indonesia Stock Exchange. Based on the result, the predetermined hypotheses are unable to prove. Net income is the only variable that affects stock return. Thus it can be concluded that net income has a value relevance for the investors in making economic decisions.

scholarly journals The effects of audit quality on the value relevance of other comprehensive incomes

2015 ◽  
Vol 18 (1) ◽  
pp. 145
Author(s):  
Levinska Primavera ◽  
Taufik Hidayat
Keyword(s):  
Audit Quality ◽  
Value Relevance ◽  
Fair Value ◽  
Net Income ◽  
Financial Industry ◽  
Industry Data ◽  
Comprehensive Income ◽  
Fixed Assets ◽  
Other Comprehensive Income ◽  
Cross Section Method

Stockholders claim deals with handling crucial role to investors while another ac-counting measurement has not yet been paid attention by the investors and analysts. Beside, another comprehensive income despite of its equal role to net income also re-quires a deep concern. This research uses financial industry data in Indonesia Capital Market for 2011-2012 under panel method and also cross-section method as the addi-tional analysis. This research assesses the effect of audit quality on value relevance of other comprehensive income regarding subjectivity embedded in other comprehensive income components. These components are determined through fair value aspects, which eventually lead to management discretion in measuring other comprehensive income components. Subjective components of other comprehensive incomes consist of foreign exchange translation (forex), revaluation in fixed assets (rev), minimum pension liability adjustment (pen), and available-for-sale securities adjustment (sec). The audit quality is believed as a mechanism which can increase the value relevance of subjective of other comprehensive income components. On the other hand, when as-sessing the value relevance of other comprehensive income components both indivi-dually and in aggregate, it is encouraged by inconsistency of previous research results.

scholarly journals The Effect Of Corporate Governance Mechanisms On The Valuation Of Comprehensive Income Reporting In Nigeria

2020 ◽  
Author(s):  
Aliyu Baba Usman ◽  
Noor Afza Amran ◽  
Hasnah Shaari
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Fair Value ◽  
Agency Cost ◽  
Positive Influence ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Comprehensive Income ◽  
Corporate Governance Mechanisms ◽  
Other Comprehensive Income

This study investigates the influence of corporate governance mechanisms on the valuation of other comprehensive income in Nigeria. The sample of this study consists of 327 firm-year observations comprising of 117 firms listed on the Nigerian Stock Exchange for the period of 2010 to 2014. The findings reveal that there is a positive influence of corporate governance mechanism on the investors’ pricing of other comprehensive income. Findings show that for firms with weak governance mechanisms, other comprehensive income is value relevant, but is more significantly priced for strong governance firms. This study finds a similar result when other comprehensive income interact with individual elements of corporate governance factor. Therefore, corporate governance mitigates reliability concerns associated with fair value earnings, agency cost will be minimised and investors are more likely to view other comprehensive income as more value relevant. It is therefore recommended that reporting entities should pursue best corporate governance practices in order to enhance investors’ confidence in the reliability of other comprehensive income.  

scholarly journals Dampak Implementasi International Financial Reporting Standard Pada Penyajian Other Comprehensive Income Perusahaan Perdagangan, Jasa, dan Investasi di Indonesia

2018 ◽  
Vol 5 (01) ◽  
pp. 14-25
Author(s):  
Denny Rianto ◽  
Nurmala Ahmar
Keyword(s):  
Financial Reporting ◽  
Joint Venture ◽  
Foreign Currency ◽  
Fair Value ◽  
Future Research ◽  
Defined Benefit ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Comprehensive Income ◽  
Other Comprehensive Income

ABSTRACT The purpose of this study is to analyze the presentation of other comprehensive income and its components in the trade, service and investment industries after the implementation of the International Financial Reporting Standard in Indonesia. The sample is the trade, service and investment industry sectors listed in Indonesia Stock Exchange 2012-2015. Other Comprehensive Income (OCI) shall be presented separately in the statements of income since 2013 and re-review for 2012 on the reporting of the relevant year. The components presented include asset revaluation, translation of foreign currency financial statements to reporting currency, actuarial changes in defined benefit obligations, changes in fair value in available-for-sale investments, fair value changes to current, joint and joint venture hedges. The result of the research shows that there is difference of presentation value of other comprehensive comprehensive component. Future research can examine the antecedents and consequent accounts of OCI components in public companies in Indonesia. ABSTRAK Tujuan penelitian ini adalah menganalisis penyajian other comprehensive income dan komponennya pada industri perdagangan, jasa, dan investasi pasca penerapan International Financial Reporting Standard di Indonesia. Sampel adalah sektor industri perdagangan, jasa, dan investasi yang terdaftar di Bursa Efek Indonesia tahun 2012-2015. Other Comprehensive Income (OCI) wajib disajikan secara terpisah pada laporan laba rugi sejak tahun 2013 dan saji ulang untuk tahun 2012 pada pelaporan tahun yang besangkutan. Komponen yang disajikan mencakup revaluasi aset, penjabaran laporan keuangan mata uang asing ke mata uang pelaporan, perubahan aktuarial dalam imbalan kerja manfaat pasti, perubahan nilai wajar dalam investasi yang tersedia untuk dijual, perubahan nilai wajar terhadap lindung nilai arus, asosiasi dan ventura bersama. Hasil penelitian menunjukkan terdapat perbedaan nilai penyajian komponen other comprehensive income. Riset mendatang dapat meneliti anteseden dan konsekuen akun komponen OCI pada perusahaan public di Indonesia. JEL Classification: M41, M48

scholarly journals THE EFFECT OF AUDIT QUALITY, TAX AVOIDANCE, LEVERAGE, AND PRESENTATION OF OTHER COMPREHENSIVE INCOME ON FIRM’S VALUE IN JAKARTA ISLAMIC INDEX COMPANY

2020 ◽  
Vol 2 (1) ◽  
pp. 1-10
Author(s):  
Nawang Kalbuana ◽  
Yohana ◽  
Agustina ◽  
Ranny Cynthia Aryadi
Keyword(s):  
Audit Quality ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Multiple Linear Regression Analysis ◽  
Policy Makers ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Current Value ◽  
Islamic Companies

The purpose of this research is to analyze the influence of Audit Quality, Tax Avoidance, Leverage, and presentation of Other comprehensive Income on Firm’s Value in companies listed in the Jakarta Islamic Index (JII) during 2015-2019. In this study Firm’s Value reflects the current value of future desired earnings and an indicator for the market in assessing the company as a whole. The sample is selected by purposive sampling method. While hypothetical testing uses multiple linear regression analysis methods. The results of this study show that variable Quality Audit, Tax Avoidance and presentation of Other comprehensive Income, have no significant effect on Firm’s Value, while Leverage has a significant effect on Firm’s Value. Simultaneously it is suggested that the Quality of Audit, Tax Avoidance, Leverage, and presentation of Other comprehensive Income has no significant effect. The implications of this research are expected to contribute theoretically to the value of Islamic companies and practically provide input for policy makers and regulators in the Jakarta Islamic Index.

Pengaruh Pengungkapan Other Comprehensive Income Terhadap Relevansi Nilai Informasi Akuntansi dengan Kualitas Audit sebagai Variabel Pemoderasi pada Perusahaan Industri Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia Periode 2015-2017

2019 ◽  
Vol 14 (2) ◽  
pp. 1
Author(s):  
Via Novita Sari ◽  
Firman Surya ◽  
Irda Rosita
Keyword(s):  
Consumer Goods ◽  
Audit Quality ◽  
Value Relevance ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Accounting Information ◽  
Sampling Technique ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Consumer Goods Industry

AbstractThis study aims to examine the effect of other comprehensive income disclosure towards value relevance of accounting information with the audit quality as moderating variables. The data used in this study is the secondary data obtained from the financial statements of consumer goods industry companies listed on the Indonesia Stock Exchange for the period of 2015-2017. The sampling technique used by using purposive sampling and it obtained the sample of 34 consumer goods industry companies. The data analysis technique used is multiple linear regression analysis and dummy variable moderation test (subgroup) using SPSS version 20. The results showed that the disclosure of other comprehensive income donot affect the value relevance of accounting information which is moderated by audit quality. Keywords: Disclosures of Other Comprehensive Income, Value Relevance of Accounting

Transparency of Fair Value Accounting and Tax

2014 ◽  
pp. 476-494
Author(s):  
Eva Eberhartinger ◽  
Soojin Lee
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Reporting Standards ◽  
Fair Value Accounting ◽  
Financial Reporting Standards ◽  
Comprehensive Income ◽  
Accounting Measurement ◽  
Other Comprehensive Income

This chapter examines transparency in fair value accounting (measurement, presentation, additional disclosure), with special emphasis on tax disclosure and on the presentation of fair values in the statement of other comprehensive income. After considering the international relevance of the International Financial Reporting Standards, the chapter discusses fair value accounting in the context of accounting standards. It then reviews prior research to determine whether fair value accounting adds to accounting transparency. It also looks at the measurement and presentation of the transparency of fair value accounting based on relevance and reliability, along with issues of earnings management and procyclical effects.

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