Study On Decision Usefulness Of Comprehensive Income Reporting Under The Perspective Of Future Cash Flows

The ministry of finance has issued accounting standards for enterprises no. Explain 3 in 2009, introduced fair value and CI, requiring companies to list OCI and total CI projects separately in the income statement. The new way of reporting unrealized/realized gains and losses is much more clear and transparent. And the disclosure of profit and loss information provides financial statement users with more information. It indicates that the international convergence of accounting standards, showing the financial target changing from the concept of fiduciary duty to decision usefulness view. Compared with the net profit, the content of CI is more broadly, improving the decision usefulness defects. But to a certain degree, CI blurs the revenue source. The ability to help investors to predict future cash flow and performance timely and accurately is worth further research and discussion.The aim of financial reporting is to provide useful information to investors and other users for their decisions. Under the perspective of future cash flows, using EXCEL and STATA12.0, multiple regression analysis method and Chinese A-share listed companies from 2009 to 2014 as a sample to analysis decision usefulness of CI.It showed that the CI has a connection with company's future cash flow, but the ability to predict future cash flows is lower than net profit. On the basis of the net profit after the disclosure of OCI, OCI is not beyond the explanation ability, but comprehensive disclosure of net profit and OCI is better than reporting CI alone. Therefore, it suggested compiling detailed income statement, and changing the project of CI and OCI items listed model in order to help information users to make decisions.