Comprehensive Income Presentation According to IAS 1 in Italy and in the United Kingdom: A Comparison of Preparers’ Opinions

Studies investigating the reasons behind corporate choices on the format of their Comprehensive Income Statement (CIS) have so far relied on research tools other than surveys and interviews, neglecting direct analysis. Our aim was to investigate the reasons behind CIS format preferences in European countries with different accounting cultures; therefore, we researched Italian and British listed companies offering non-financial services and the reasons for their preferences using a survey-based approach. Our findings show that: (i) preparers deem the Comprehensive Income a performance measure mainly useful to ‘financial’ stakeholders; (ii) the two-statement format and its stability prevail; (iii) the main reasons driving format choices are easy reading and interest in Profit and Loss (P/L) if the preference is for two statements, and simplicity for readers and preparers in the case of one statement; (iv) Other Comprehensive Income related reasons are the least important for format choices; (v) while British preparers focus on their interest in P/L (two statements) or easy reading (one statement) as the ‘bottom line’ determining their choice, Italian preparers focus on easy reading only in case of one statement, while also deeming important their interest in P/L in case of two statements; (vi) British preparers emphasize the easy preparation of financial statements more than their Italian counterparts. Hence, despite some differences, the two countries are aligned in considering reader-oriented reasons in their format choice. This means that, contrary to what could be reasonably expected, different accounting cultures can choose the same CIS format because of the same reasons.

Buy, borrow, or access online?

Purpose This paper aims to investigate the reading format choices of students in a reading-intensive course when faced with options of purchasing their assigned readings in print, borrowing them from library reserves, accessing them from their course website or any combination thereof. It also seeks to map their behaviors to their academic aptitudes and achievements. Design/methodology/approach An online survey was distributed at the end of the quarter consisting of nine multiple-choice and open-ended questions on their format behaviors and academic aptitudes. Descriptive statistics, Chi-square tests and content analysis were used to obtain results. Findings Most students in this study purchased print copies of their assigned readings even though they were available for free both in the library and online. Over 72 per cent read their assignments either in“print” or “mostly in print”. However, the data did not produce evidence of correlations between format behaviors and SAT Writing scores or final grades in the course. Research limitations/implications The self-selected sample of participants appears to be academically homogeneous without enough diversity of behaviors and aptitudes to make generalizations. Replication of this study should be performed among a more academically diverse group of students. Originality/value Studies show that students prefer print to electronic format for academic readings, but they often cite factors like cost and convenience that impact their behaviors. Rather than survey general preferences, this study examines actual behaviors when presented with several format options and discusses why students make their choices.

Comprehensive Income: How Is It Being Reported And What Are Its Effects?

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: x-small;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; letter-spacing: -0.15pt;">SFAS No. 130 allows three format choices for reporting </span><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;;">comprehensive income (CI); two involve reporting CI in a performance-based financial statement, while the third option incorporates it into a statement of changes in stockholders' equity (SCSE).<span style="mso-spacerun: yes;">&nbsp; </span>Prior research suggests that reporting CI in the latter option results in less useful information for investors.<span style="mso-spacerun: yes;">&nbsp; </span>This study examines CI reporting for a sample of financial service firms and demonstrates that a majority (63%) of them chose a SCSE format.<span style="mso-spacerun: yes;">&nbsp; </span>In addition, a significant association existed between both the direction and size of the components of other comprehensive income and the format chosen.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p>