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.

Assessing value relevance of comprehensive income in European banks and other financial institutions

2013 ◽  
pp. 13-41 ◽  
Author(s):  
Alessandro Mechelli ◽  
Riccardo Cimini
Keyword(s):  
Financial Institutions ◽  
Value Relevance ◽  
Financial Statements ◽  
Financial Assets ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Comprehensive Income ◽  
European Banks ◽  
Gains And Losses

The IAS/IFRS compliant groups have been disclosing comprehensive income since 2009, when the IAS 1-revised became effective. This paper aims to investigate the value relevance of comprehensive income and its components in European banks and other financial institutions. The research has been developed by having a sample of 166 European listed groups whose data have been collected in the 2009, 2010 and 2011 (498 firm-year observations) consolidated financial statements. In contrast to previous findings, related to all the sectors, our research highlights a higher value relevance of comprehensive income in respect to net income. Moving to the single OCI components, our results suggest that gains and losses on remeasuring available-for-sale financial assets (AFSit) are value relevant in European banks and other financial institutions.

scholarly journals Corporate Reporting of Other Comprehensive Income

2018 ◽  
Vol 8 (2) ◽  
pp. 212
Author(s):  
Charles Mulford ◽  
Anna Babinets
Keyword(s):  
Financial Performance ◽  
Annual Report ◽  
Financial Statements ◽  
Net Income ◽  
Income Loss ◽  
Future Earnings ◽  
Corporate Reporting ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses

In this study, we examine the annual report filings of S&P 100 companies that report other comprehensive income/(loss) over the three-year period of 2013-2015. We seek to gain a deeper understanding of the components of other comprehensive income and to determine if there is a systematic tendency for companies to include more gains or losses in other comprehensive income. Further, we seek to determine which components of other comprehensive income show more unexpected losses than gains and what impact other comprehensive income gains and losses may have on future earnings.We find a systematic tendency for firms to report more losses than gains in other comprehensive income, both in frequency and amount. This result is especially true for investment-related gains and losses, where managements have more discretion in the timing of gain and loss recognition.In terms of their impact on future earnings, we find that 43 companies in the S&P 100 reclassified some component of accumulated other comprehensive income gains and losses to net income over the period 2013- 2015, highlighting the observation that other comprehensive income gains and losses are, in effect, future elements of net income. These results remind analysts and investors that net income does not tell the entire story of a firm’s financial performance. Beyond users of financial statements, regulators, such as the FASB and SEC, may want to reconsider whether items of other comprehensive income should be included in net income.

scholarly journals Evaluation of information in the statements of profit or loss and other comprehensive income of WIG30 companies

2018 ◽  
Vol 2018 (97 (153)) ◽  
pp. 77-98
Author(s):  
Edyta Łazarowicz
Keyword(s):  
Financial Institutions ◽  
Financial Statements ◽  
Global Scale ◽  
Anal Ysis ◽  
Foreign Companies ◽  
Comprehensive Income ◽  
Operating Profit ◽  
The World ◽  
Other Comprehensive Income

The aim of the article is to analyze and assess the comparability of the structure and content of statements of profit or loss and other comprehensive income of listed companies included in the WIG30 index (excluding financial institutions and foreign companies) and to propose some solutions to increase comparability. 21 financial statements for 2016 were analyzed. Two research methods were used: literature review and anal-ysis of the content of financial statements. All companies presented gross profit subtotal, which classified expenses by function in the statement of profit or loss and other comprehensive income (almost 75% of analyzed companies). However, some differences were observed in the calculation of that subtotal. The majority of the companies also presented other subtotals which are not required by IAS 1 – an operating profit subtotal and profit before tax subtotal. Generally all companies classified expenses by nature in the manner prescribed in the Polish Accounting Act. IASB should consider a requirement that companies pre-sent more additional subtotals in the statement of profit or loss and other comprehensive income, and should also prescribe the way of its calculation because many companies in the world (including Poland) present such subtotals. Moreover, in order to increase comparability of this statement, it might be advisable to introduce more detailed regulations concerning classification of expenses by nature and the place of presen-tation of the item Share of result of associates and joint ventures, because as some research indicates there are inconsistencies at the global scale. The findings of this research can be useful for the IASB work on changes in the structure and content of the statement of profit or loss and other comprehensive income to increase its comparability. Moreover, in Poland, previous research concerning the structure and content of the statement of profit or loss and other comprehensive income mainly focused on other comprehensive income rather than profit or loss.

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

DİĞER KAPSAMLI GELİR KALEMLERİ İLE İŞLETMENİN PİYASA DEĞERİ ARASINDAKİ İLİŞKİ

2014 ◽  
Vol 1 (3) ◽  
pp. 269
Author(s):  
Serhan Gürkan ◽  
Yasemin Köse
Keyword(s):  
Financial Performance ◽  
Value Relevance ◽  
Net Income ◽  
Comprehensive Income ◽  
Income Statement ◽  
Other Comprehensive Income ◽  
The Difference ◽  
Gains And Losses

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.

Bridge over troubled water: Is it possible to define other comprehensive income?

2021 ◽  
pp. 61-87
Author(s):  
Thomas Ryttersgaard
Keyword(s):  
Conceptual Framework ◽  
Balance Sheet ◽  
Accounting Standards ◽  
The Core ◽  
Comprehensive Income ◽  
Accounting Principles ◽  
Income Statement ◽  
Other Comprehensive Income ◽  
Definition Of ◽  
Gains And Losses

Although other comprehensive income did not exist in the conceptual framework until 2018, it has been a part of IFRS for many years, and it has not been defined based on accounting theory. This paper considers arguments for the current use of other comprehensive income under IFRS and finds that matching and prudence are at the core of other comprehensive income in IFRS despite not being elements of the conceptual framework. This suggests that the concept of other comprehensive income exists because the IFRS standards are founded on a mix of balance sheet-based and income statement-based accounting principles. Based on the characteristics of other comprehensive income and the IASB's arguments for the recognition of gains and losses in other comprehensive income, this paper proposes a definition of other comprehensive income that can be used to ensure a uniform application of the concept across accounting standards and to reduce risks of inconsistency.

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.

scholarly journals Sector Diversification of Statements of Comprehensive Income Illustrated with the Example of Entities Listed on the Warsaw Stock Exchange

2019 ◽  
Vol 19 (2) ◽  
pp. 134-148
Author(s):  
Piotr Prewysz-Kwinto
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Accounting Standard ◽  
Comprehensive Income ◽  
Warsaw Stock Exchange ◽  
Other Comprehensive Income ◽  
High Level ◽  
International Accounting Standard ◽  
The Way

Abstract Research background: The rules of preparing the statement of comprehensive income are included in the International Accounting Standard 1 “Presentation of Financial Statements” which gives a lot of freedom in the way information is presented in these documents. So the following question was asked whether the way of presenting information regarding results between enterprises representing the same industries manifests similarities or differences? Purpose: The main aim of this paper is to verify whether despite the high level of flexibility given by IAS 1 in presenting information, the statements of comprehensive income prepared by entities belonging to the same sectors, manifest significant similarities. Research methodology: The research covered the financial statements prepared for the financial years 2015–2017 and by almost 200 entities listed on the Warsaw Stock Exchange and representing 14 different industries. The method of descriptive statistics was used in the quantitative analysis. Results: The results obtained allowed to show many similarities in statements drawn up by entities representing the same sectors concerning among others: the forms of drawing up this document, the variant of a statement, its internal construction and presentation of other comprehensive income. Novelty: Research on sector differentiation of information in the statement of comprehensive income on a group of entities listed on the Warsaw Stock Exchange has not been conducted yet.

TELAAHAN PENERAPAN SISTEM INFORMASI AKUNTANSI DENGAN MYOB UNTUK PENYAJIAN LAPORAN KEUANGAN BERDASARKAN PSAK NO. 1 PADA CV. GRAPH PRINTING

2019 ◽  
Vol 6 (1) ◽  
pp. 87
Author(s):  
Adri Wihananto
Keyword(s):  
Information System ◽  
Accounting Information ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Accounting System ◽  
Company Performance ◽  
Accounting Standard ◽  
Accounting Information System ◽  
A Company

Financial statements represent end result from applying an information accounting system. Therefore, to yield good financial statement needed a good information system also. With existence of computerized accounting information system it is provided that accounting information system will walk better and the yielded to financial statements become more accurate and complete. The objective of this research is to know accounting system which previously exists at CV Graph Printing. Others, this research also aim to apply computerized accounting information system with MYOB. This application is expected could help company make good financial statement. CV Graph Printing represent a company moving in the field of printing office. The effort area experienced by this company for example setting (invitation, brochure, visiting card, etc.), screening (clothes, invitation, plastic, etc.), and print (book, invitation, note, etc.). The result of research indicate that accounting information system which preexist at company, that is manual administrate system is not be adequate again. Accounting record process for transactions that happened in company have never been done. Others also the transaction evidences are not kept better. The most important fact is that during the time the company not at all own financial statement so that the owner do not know their company performance during the time. With existence of applying MYOB in its accounting information system, transaction record become easier and quickly. Financial statement could visible any time we wish. Others also, financial statement yielded become more accurate and complete as according to Financial Accounting Standard (FAS) which is validKeywords: accounting information system, MYOB, financial statement

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