Research On Presentation And Disclosure Of Other Comprehensive Income For Listed Companies

The Other Comprehensive Income (OCI) was introduced in and Ministry of Finance PRC : (Coded Finance and Accounting [2009]: No.16). Meanwhile, the style of statement of comprehensive income and statement of changes in equity should be adjusted, effective since Jan 1, 2009. However, the OCI's concept is widespread and items confirmation is blurred. Moreover, with the accountant standard updated, some new concepts are bought up without clearly concept. Therefore, in accounting practice, the concepts of profit and loss charged to equities, OCI and capital transaction are misused frequently. For example, in annual report in 2009, the presentation and disclosure of OCI shows the disused situation. In this issue, the presentation and disclosure of OCI in China listed companies, whatever for theory or practice, is a valued domain. In this thesis, some tests about OCI should be done.According to IFRS (International Financial Reporting Standards) and CAS (Chinese Accounting Standards), some standards about OCI are analyzed. With the theories, some problems about OCI are bought up in this thesis. Such as the concept and significance of OCI, the difference between OCI and capital transaction, items confirmation of OCI.Connecting with the accounting practice in China, the concept and content of OCI can be discussed. Furthermore, accounting to the CAS, the transactions or items charged to Equities can be analyzed and classify to capital transactions, OCI or retained earnings. Based on this analysis, the clearly concept of OCI can be introduced and the items of OCI can be confirmed.In this thesis, the data is analyzed in turn and summarized. Based on the analyzing and summarizing OCI of the annual report in 2009 of listed companies, the data of OCI in annual report in 2009, the articulation of statements and percentage of listed companies with suspected misstatement are got. However, other problems about presentation and disclosure of OCI are analyzed and summarized.The result shows that the annual report in 2009 of listed companies with suspected misstatement is more than a quarter. If the companies without equity changed can be take out, the percentage should be increased significantly. In the data, the OCI presented in the consolidated statement of comprehensive income and consolidated statement of changes in equity has more difference. It shows that the articulation of statements is spoiled. The reliability of information should be doubted.Moreover, classification the problems, the situations are illustrated and discuss the reasons. Meanwhile, parts of cases about OCI misstatement are analyzed. Based on the analysis, the evaluation about the presentation and disclosure of OCI of listed companies in 2009 can be bought up. Focus on those problems, some strategy's advices can be given about OCI from practice aspect:(1) The propaganda, training and guidance of comprehensive income should be enhanced in statement of financial position view.(2) The concept and differences of OCI and capital transaction should understand further, especially the standards of capital transaction should include more details.(3) The standards of confirmation and reclassification the OCI should be more clearly.(4) Suggesting that equity account"OCI"should be set or setting the second level subsidiary account in capital reserve, so that, the OCI can be divided into the capital reserve which comes from capital transaction. Meanwhile, suggesting that items belonging OCI are in practice but do not regulate in accounting standard, such as the influence number of Shadow accounting in assurance companies, should be regulated as soon as possible.