Empirical Research On Value Relevance Of Other Comprehensive Income

With the development of financial innovation and the complexity of business activities,it is more and more difficult for traditional measurementbased measurement and presentation models to fully reflect the income of enterprises to meet the needs of users of financial statements at the first time.China Accounting Standards required companies to list "other comprehendsive income","comprehensive income" in the income statement,and to disclose the details of the project content in 2009.To further enhance the transparency of accounting information,CAS30 was issued in 2014,refining the relevant provisions,and it required to list the classification of the income statement in the other comprehensive income of specific projects.Based on the relevant provisions of MOF issued in 2014,this paper made an in-depth study on the value relevance of other comprehensive income and its specific items with the price model.Firstly,with the financial data of the Shanghai A-share listed companies from 2011 to 2013 as a sample,the correlation tested of other comprehensive income in the profit table single column value relevance of reported financial data will be done;and then the financial data of Shanghai A-share listed companies from 2014 to 2015 was made relative test and analysis as samples.With two sets of samples to study,we then got the results whether classified report model research of other comprehensive income would increase the value relevance.The results showed that the classification of other comprehensive income in the income statement would increase the value relevance of the subject and improve the investor's interest in other comprehensive income.From the specific presentation of the project,the change in fair value of financial assets and foreign currency translation differences occupy the main part of other comprehensive income,and it also showed a strong value relevance;the value relevance of other comprehensive income items is stronger than that of other comprehensive income.This is closely related to the development of China's financial market and the globalization of economic development.Therefore,it is recommended that standard-setting bodies refine the criteria for the future development of accounting standards,further improve the quality standards of accounting information disclosure,strengthen the reporting and disclosure of other comprehensive income "off balance sheet items",integrate other comprehensive benefits into the field of financial analysis appropriately,gradually guide the market attention to the concept of comprehensive income.At the same time,the listed companies should pay more attention to the report and disclosure of other comprehensive income.