Premium
Value Relevance of Mandated Comprehensive Income Disclosures
Author(s) -
Cahan Steven F.,
Courtenay Stephen M.,
Gronnewoller Paul L.,
Upton David R.
Publication year - 2000
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/1468-5957.00356
Subject(s) - net income , relevance (law) , equity (law) , comprehensive income , accounting , income statement , sample (material) , outlier , economics , value (mathematics) , actuarial science , business , econometrics , public economics , gross income , statistics , balance sheet , political science , mathematics , state income tax , chromatography , law , chemistry , tax reform
This study provides some market based evidence on the usefulness of comprehensive income disclosures in a Statement of Changes in Equity (SCE). Using a sample of listed New Zealand firms, we find no evidence that separate disclosure of the comprehensive income items provides any value relevant information above and beyond the aggregate comprehensive income figure. Likewise, in the post‐SCE period, we find no evidence of an increase in the incremental value relevance of the comprehensive income items over net income. While our results are sensitive to outliers, they suggest that standards requiring disclosure of a SCE may not be necessary.