Comprehensive Income: Components and IFRS Reporting

Auditor ◽  
2017 ◽  
Vol 3 (3) ◽  
pp. 36-40
Author(s):  
������� ◽  
L. Shmarova
Keyword(s):  
Reporting Standards ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Income Reporting ◽  
A Company

This paper gives an overview of the international fi nancial reporting standards requirements for companies� comprehensive income reporting, examines the existing approaches to the interpretation of the �comprehensive income� term, analyzes possible options of the comprehensive income reporting, as well as gives attention to discussions in relation to the possible reclassifi cation of other comprehensive income components to profi t or loss statement of a company.

Comprehensive Income: Components and IFRS Reporting

Auditor ◽  
2017 ◽  
Vol 3 (3) ◽  
pp. 36-40 ◽  
Author(s):  
Шмарова ◽  
L. Shmarova
Keyword(s):  
Reporting Standards ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Income Reporting ◽  
A Company

This paper gives an overview of the international fi nancial reporting standards requirements for companies’ comprehensive income reporting, examines the existing approaches to the interpretation of the «comprehensive income» term, analyzes possible options of the comprehensive income reporting, as well as gives attention to discussions in relation to the possible reclassifi cation of other comprehensive income components to profi t or loss statement of a company.

The Contrast Research of Presentation and Disclosure about other Comprehensive Income

2014 ◽  
Vol 687-691 ◽  
pp. 5080-5084
Author(s):  
Xing Wei
Keyword(s):  
United States ◽  
Accounting Standards ◽  
The United States ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Income Reporting

This article compares and analyzes the distinguish between the accounting standards for enterprises in our country about other comprehensive income reporting and disclosure of financial accounting standards from the IAS (International Accounting Standards) and the FASB in the United States, through four aspects as the meaning of other comprehensive income, the concrete content and accounting, presentation and disclosure.

scholarly journals Comprehensive Income Reporting and Earnings Management

2017 ◽  
Vol 1 (01) ◽  
pp. 12
Author(s):  
Runita Arum Kanti
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Interaction Effect ◽  
Design Methodology ◽  
Discretionary Accruals ◽  
Reporting Standards ◽  
Negatively Associated ◽  
Financial Reporting Standards ◽  
Comprehensive Income ◽  
Income Reporting

<p>Purpose. This paper aims to identify the association between comprehensive income reporting and earnings management. More specifically, this study examines whether the implementation of comprehensive income reporting regulations, namely SFAS 130 and ASU 2011-05 is associated with a decrease in earnings management.<br />Design/ methodology. Data for all variables is retrieved from Compustat Global for a nine-year sample of 7962 US firms reporting under International Financial Reporting Standards (IFRS) that provide all the necessary data to conduct the study. The Modified Jones Model is used as a proxy to measure earnings management. Comprehensive income figures are retrieved from Compustat. Recalculated (as-if) numbers are used for firm years prior to the implementation of SFAS 130. While as-reported amounts are used for the years where SFAS 130 has been implemented and also the years during the implementation of ASU 2011-05.<br />Findings. Comprehensive income is found to be significantly negatively associated with earnings management through discretionary accruals. Furthermore, the interaction effects indicate that, after the implementation of SFAS 130 and ASU 2011-05, comprehensive income becomesmore negatively associated with discretionary accruals.<br />Relevance. Other than contributing to the growing literature regarding the usefulness of comprehensive income reporting, this research has implications for the FASB in assessing whether they achieved the target of better comprehensive income reporting.</p><p><br />Key words: Comprehensive Income, Earnings management, Interaction effect, Reporting Regulations, SFAS 130, ASU 2011-05.</p>

Academic Research and Standard-Setting: The Case of Other Comprehensive Income

2012 ◽  
Vol 26 (4) ◽  
pp. 789-815 ◽  
Author(s):  
Lynn L. Rees ◽  
Philip B. Shane
Keyword(s):  
Academic Research ◽  
Accounting Standards ◽  
Standard Setting ◽  
Net Income ◽  
Financial Accounting Standards Board ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Income Reporting ◽  
Definition Of ◽  
Accounting Standard Setting

SYNOPSIS: This paper links academic accounting research on comprehensive income reporting with the accounting standard-setting efforts of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). We begin by discussing the development of reporting other comprehensive income, and we identify a significant weakness in the FASB's Conceptual Framework, in the lack of a cohesive definition of any subcategory of comprehensive income, including earnings. We identify several attributes that could help allocate comprehensive income between net income, other comprehensive income, and other subcategories. We then review academic research related to remaining standard-setting issues, and identify gaps in academic research where hypotheses could be developed and tested. Our objectives are to (1) stimulate standard-setters to better conceptualize what is meant by other comprehensive income and to distinguish it from earnings, and (2) stimulate researchers to develop and test hypotheses that might help in that process.

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.

scholarly journals How to Recognize and Measure Compound Financial Instruments?

2020 ◽  
Vol 4 (1) ◽  
pp. 85
Author(s):  
Yan Wang ◽  
Zhuqian He ◽  
Shijia Yan
Keyword(s):  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Instruments ◽  
Financial Reporting Standards ◽  
Comprehensive Income ◽  
Other Comprehensive Income

Basing on the Xiaomi case, this paper discusses the most appropriate accounting treatment of compound financial instruments under the framework of International Financial Reporting Standards (IFRS) and how other comprehensive income (OCI) plays important role in it. Overall, this paper provides some references for policymaker to standardize financial instruments standard.

Comprehensive Income: Who's Afraid of Performance Reporting?

2010 ◽  
Vol 85 (1) ◽  
pp. 97-126 ◽  
Author(s):  
Linda Smith Bamber ◽  
John (Xuefeng) Jiang ◽  
Kathy R. Petroni ◽  
Isabel Yanyan Wang
Keyword(s):  
Location Choice ◽  
Job Security ◽  
Net Income ◽  
Comprehensive Income ◽  
Performance Reporting ◽  
Income Statement ◽  
Two Factors ◽  
Other Comprehensive Income ◽  
Income Reporting ◽  
Broad Cross Section

ABSTRACT: Firms can report comprehensive income in either an income-statement-like performance statement or the statement of equity. Traditional theories of contracting incentives cannot explain this reporting location choice that only affects where comprehensive income data appear, because the contractible values of net income, other comprehensive income items, and comprehensive income are exactly the same regardless of the location where the firm reports comprehensive income. Drawing on theory, analysis of comment letters, and results of survey-based and behavioral research, we identify two factors—equity-based incentives and concerns over job security—that help explain why most firms do not follow policymakers' preference to report comprehensive income in a performance statement. Our empirical evidence on a broad cross-section of firms shows that managers with stronger equity-based incentives and less job security are significantly less likely to use performance reporting. Overall, our study suggests that even though the reporting location choice is inconsequential in a traditional rational markets view, managers act as if they believe that comprehensive income reporting location matters.

scholarly journals Recognition of comprehensive income in Slovak companies

2014 ◽  
pp. 8-14 ◽  
Author(s):  
Marta Lapková ◽  
Jana Stašová
Keyword(s):  
Financial Institutions ◽  
Financial Statements ◽  
National Standards ◽  
Company Performance ◽  
Financial Assets ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
A Company

Financial statements are the key resource for assessing a company´s performance. The form and content of financial statements reflect a country`s accounting regulations. If financial statements can be drawn up under a range of different principles and procedures, this may cause problems for external users. The purpose of this paper is to evaluate comprehensive income recognition in the financial statements of Slovak companies that are prepared according to IFRS, with an emphasis on items of other comprehensive income. Our research showed that Slovak companies preparing financial statements in accordance with IFRS use a range of options allowed by national standards. Therefore the form of their comprehensive income recognition varies. Other comprehensive income was recognized in the statement of profit or loss and other comprehensive income, in the majority of researched entities. Our research shows that reporting of other comprehensive income divided into reclassified and not reclassified items is relevant for the assessment of company performance, because of their impact on reported profit or loss, and on selected indicators of profitability, particularly for our sample of financial institutions. This is due to the nature of their activity, for in  most cases the gains and losses on financial assets available for sale are recognized in other comprehensive income, which will be reclassified to profit or loss in subsequent periods.

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