Empirical Research On The Decision-making Usefulness Of Other Comprehensive Income Information Decision

The important objective of the modern financial accounting report is the decision-making usefulness.In the context of China's accounting standards converging on international standards,one of the major changes in the financial report is the introduction of other comprehensive income and comprehensive income concepts in order to improve the decision-making usefulness of accounting information.In June 2009,the Ministry of Finance issued "Accounting Standard for Business Enterprises No.3" that proposed adding other comprehensive income projects in the income statement.In January 2014,the revised Accounting Standards for Business Enterprises No.30-Statement of Financial Statements stipulates that other comprehensive income items should be classified in the income statement according to whether they can be reclassified into profit or loss.And other comprehensive income is presented separately from other capital reserve in the balance sheet.Whether the change of other comprehensive income reporting system can improve the decision-making usefulness of accounting information deserve to research.This thesis tests the decision-making usefulness of other comprehensive income in order to provide theoretical support for the characteristics and necessity of other comprehensive income,enriching the content of this document,and providing realistic reference for accounting reform of the criteria development bodies and Regulatory supervision.This thesis uses the combination of theoretical analysis and empirical analysis.In terms of theoretical analysis,this thesis defines the concept of relevance and reliability of accounting information decision-making.And it sets forth the concept of fiduciary duty and decision-making usefulness,signal transfer theory,stakeholder theory and risk theory on the basis of.In terms of empirical analysis,this thesis tests the decision-making usefulness of other comprehensive income from two aspects: correlation and reliability.About the relativity of other comprehensive income,this thesis respectively uses the price model and the credit model to test the impact of the decision on the investor's decision and the creditor's decision.The results show that: 1)For the explanatory power of stock price and the bank loan balance,other comprehensive income and comprehensive income information have relevance,but these relevance are weaker than the net profit;2)The consolidated income is combined by the net profit and other comprehensive income in the report and notes.This presentation can increase the information content of the accounting information.About reliability of other comprehensive income information,shanghai A-share listed companies financial reports from2012 to 2015 are samples.This thesis investigates the situation of presentation of the other comprehensive income in the financial statements.The results show that: 1)Other comprehensive income still have misstatement,omission,ticking errors or even the concept of confusion and other issues;2)From 2012 to 2015,other comprehensive income disclosure situation have improved year by year.The research confirms that other comprehensive income information has decision-making usefulness.