Open AccessComprehensive Income: How Is It Being Reported And What Are Its Effects?
Author(s) -
Charles E. Jordan,
Stanley J. Clark
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v18i2.2109
Subject(s) - span (engineering) , style (visual arts) , literature , engineering , art , civil engineering
SFAS No. 130 allows three format choices for reporting 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). Prior research suggests that reporting CI in the latter option results in less useful information for investors. This study examines CI reporting for a sample of financial service firms and demonstrates that a majority (63%) of them chose a SCSE format. In addition, a significant association existed between both the direction and size of the components of other comprehensive income and the format chosen.