How Comprehensive is Comprehensive Income? The Value Relevance of Foreign Currency Translation Adjustments

Other comprehensive income is the difference between net income as in the Income Statement and comprehensive income, and represents the certain gains and losses of the enterprise not recognized in the Profit or Loss Account. Value relevance of other comprehensive income is under discussion and considering other comprehensive income items all together might be misleading for financial performance. In the view of such information, discussing the value relevance of each other comprehensive income item, judgements are made.

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The Study of Value Relevance of on Foreign Currency Transaction

Accounting Information Review ◽

10.29189/kaiaair.35.1.4 ◽

2017 ◽

Vol 35 (1) ◽

pp. 97-120

Author(s):

Seong Il Jeon ◽

Ki Se Lee

Keyword(s):

Foreign Currency ◽

Value Relevance

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Value relevance of accounting data and financial crisis in Europe: an empirical analysis

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v2i2.2527 ◽

2012 ◽

Vol 2 (2) ◽

pp. 201 ◽

Cited By ~ 3

Author(s):

Alain Devalle

Keyword(s):

Financial Crisis ◽

Positive Impact ◽

Value Relevance ◽

Net Income ◽

Accounting Data ◽

Book Value ◽

Crisis Period ◽

Comprehensive Income ◽

The Impact ◽

The Relationship

This paper aims at verifying the relationship between book value and market value for a four years period (2006-2009) in Europe, under IFRS. In particular, I used value relevance approach to measure whether net income or comprehensive income are more useful to understand the relationship between market data and financial data. Moreover, the paper analyzes the impact of financial crisis on the value relevance of accounting data. The examination period runs from a pre-crisis period (2006-2007) to an in-crisis period (2008-2009). Results shows that comprehensive income is more value relevant than net income. Furthermore, the financial crisis has a positive impact on value relevance.

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The Influence of the Quality of an Audit to Relationship Other Comprehensive Income (OCI) And Relevance of Value Accounting Information, And Asymmetry of Information (Study on Companies in Indonesia)

GATR Global Journal of Business Social Sciences Review - GATR Global Journal of Business and Social Science Review (GJBSSR) Vol.7(1) Jan-Mar 2019 ◽

10.35609/gjbssr.2017.5.1(7) ◽

2017 ◽

Vol 5 (1) ◽

pp. 46-52

Author(s):

Yurniwati Yurniwati ◽

Amsal Djunid ◽

Nini Sumarni ◽

Ike Pranita

Keyword(s):

Information Asymmetry ◽

Value Relevance ◽

Linear Regression Analysis ◽

Accounting Information ◽

Asymmetry Of Information ◽

Comprehensive Income ◽

Other Comprehensive Income ◽

Relationship Of ◽

The Relationship

Objective - This study examines the influence of the quality of an audit to the relationship of Other Comprehensive Income (OCI) and Relevanceof Value Accounting Information, and Asymmetry of Information in Indonesia's companies. Methodology/Technique - This research uses secondary data obtained from the company's annual report in 2012 - 2014. A purposive sampling method is used to collect data and the analysis of the hypothesis was conducted usingmultiple linear regression analysis. Findings - The research has shown that Quality of Audit has a significant influence to the relationship of the OCI disclosure and Relevance of Value Accounting Information has a value of sig. 0.000, F calculate is 26.816 larger than F table 2.396 and adjusted R square 0.241. Novelty - The study looks at the disclosures of OCI component's role in the investors decision making and it increases value relevance of accounting information and reducing information asymmetry. Type of Paper - Empirical Keywords: Other Comprehensive Income (OCI); Relevance of Value Accounting Information; Information Asymmetry; Quality of Audit. JEL Classification: D82, M41, M42.

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