Information Content Of Comprehensive Income-an Empirical Survey Based On The Shanghai A-share

Financial income statement plays an important role in accounting system. However, due to accounting changes in the environment, economic and social development and progress, and other reasons, inherent defects of the traditional accounting income to determine the patterns increasingly exposed, which drew increasing criticism. The conservative principles do not accurately evaluate the operating results in the knowledge economy; the historical cost model cannot match the nature of property and assets, then the value relevance of traditional accounting income decline, and the traditional accounting earnings reports con not conform with the decision usefulness concept of the new financial reporting targeting. Therefore, the countries of the world are actively exploring ways to improve the income presentation.Western countries tried to improve the income statement, and then implemented the "statement of comprehensive income" or "statement of total recognized gains and losses". In our country, there are many scholars who research the theory of comprehensive income, but few people research the value relevance of comprehensive income. The new accounting standards published in2006has put the way for the comprehensive income statement in our country. Is it necessary that put the comprehensive income statement in China? How are about the value relevance of comprehensive income? Based on the above issues, this article studies comprehensive income from a new perspective, which based on our capital markets, makes empirical investigation about value relevance of the comprehensive income. The study finds that the value relevance of the overall income is not higher than that of traditional net income. Then combined with the new "Enterprise Accounting Standards", about the relevance of policy recommendations for the further improve the value of China’s accounting income. Then combining with the new "Enterprise Accounting Standards", puts forward policy recommendations about further improving the value relevance of China’s accounting income.This paper learns foreign research ideas on the value relevance of comprehensive income, relies on China’s capital market, uses the method of empirical research combining with case studies, and researches the information content of the comprehensive income in six parts.The first chapter is an introduction on the background of this study, the meaning, purpose, methods and research questions, ideas, papers framework and innovation.The second chapter is a literature review, in this part, on the basis of reading the literature, summarizes theoretical foundation and experience achievements of the existing comprehensive income, and summarizes the different points of view from the usefulness of the traditional revenue, the usefulness of comprehensive income and the presentation mode of comprehensive income.The third chapter is the overview of the theory. First clear the information content, the concept of value relevance and value relevance of accounting information research, which lay the foundation for subsequent model design and assumptions. And then through an overview of the reform of the traditional income concept, the development process of the comprehensive income concept, and the reform of the presentation mode of comprehensive income of all countries, to make clear the meaning and characteristics of comprehensive income for the reader.Chapter IV is the descriptive statistics, analysis the information content current situation of comprehensive income. This part analyzes the disclosure situation of comprehensive income and other comprehensive income in601listed companies year by year, summarizes disclosure problems in the format, analyzes the specific cases, and explores the application of comprehensive income in our country.The fifth chapter is the empirical testing process, mainly tests the information content to the market through regression testing the traditional accounting income and comprehensive income in its annual report released before and after. Chapter VI is Conclusions and outlook. First, summarize the empirical conclusions, and then try to put forward some policy recommendations to further improve the value relevance of China’s accounting income.This paper analyzes the information content of comprehensive income and the net proceeds of the new accounting standards advocated by China’s Shanghai A-share market from2007to2010data for the study. The results show that the traditional income and comprehensive income information content and information provide more relevant value for users, although in a few years, the information content of comprehensive income was not high more than the net profit, the usefulness of comprehensive income is a growing trend, that is comprehensive income is increasingly useful.I believe that with the new standards gradually implementing and improving, the comprehensive income will play a more important role in the development of China’s accounting system and securities markets.