scholarly journals The Relative Value Relevance of Total Comprehensive Income and Net Income －Focus on Consolidated Financial Statements－

2017 ◽  
Vol null (54) ◽  
pp. 97-122
Author(s):  
팽영희 ◽  
Jae-Won Jeong
Keyword(s):  
Value Relevance ◽  
Financial Statements ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Comprehensive Income ◽  
Relative Value

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 Empirical Analysis Of The Impact Of Comprehensive Income On Basic Earnings Per Share For Spanish Companies Listed On Madrid Stock Exchange

2011 ◽  
Vol 8 (6) ◽  
Author(s):  
Francisco Sousa Fernández ◽  
María Mercedes Carro Arana
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
Main Body ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Comprehensive Income ◽  
General Terms ◽  
Earnings Per Share ◽  
The Impact

In this study we will empirically evaluate the overall impact, and by industries, of Basic Earnings per Share calculated according to Comprehensive Income against the same ratio determined in accordance with Net Income, for a sample of ninety-two Spanish groups listed on the Madrid Stock Exchange during 20042007, in agreement with the information contained in their Consolidated Financial Statements pursuant to IASB GAAP and industry classification adopted in this market.In order to contrast the corresponding hypotheses, a set of non-parametric tools were used, as the data was far from normalcy. The results of our paper, which are ground-breaking at an international level, show a statistically significant impact of Basic Earnings per Share calculated according to Comprehensive Income against the same ratio determined pursuant to Net Income for the sample group in all of the years that were analyzed. On the other hand, when approaching the study by industries, we have observed quite uniform behavior between them in the sense that we found a remarkable impact on listed companies in all industries, which is why in general terms we are witnessing a phenomenon that affects the listed companies regardless of the nature of their business activities.These evidences, apart from suggesting a new dimension in the fundamental analysis, of particular interest to analysts and investors, justifies the disclosure of Basic Earnings per Share determined according to Comprehensive Income, not only in the notes, but also in the main body of the Statement of Comprehensive Income.

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.

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

2012 ◽  
Vol 2 (2) ◽  
pp. 201 ◽  
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.  

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.

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