Research On Presentation And Disclosure Of Other Comprehensive Income

The concept of comprehensive income was firstly defined in Notice of Financial Accounting Concepts No.3(SFAC3) issued in1980by Financial Accounting Standards Board (FASB). Presentation and disclosure of other comprehensive income in financial statements reflect the direction of reform to promote the concept of decision usefulness and comprehensive income used.2008, financial crisis triggered by mortgage crisis in the U.S., which makes the fair value accounting standards has aroused widespread concern. Group of Twenty (G20) summit, the Financial Stability Board (FSB) propose to create a unified system of high-quality accounting standards. In order to actively respond to the adverse effects of accounting standards caused by the financial crisis and to achieve international convergence of accounting standards, IASB and FASB joint to research on presentation and disclosure of other comprehensive income. China is also in2009published "Enterprise Accounting Standards No. interpretation" in the other to improve presentation and disclosure of comprehensive income, and in2012released the draft of "Enterprise Accounting Standards No.30-Financial Reporting". Other comprehensive income will be divided into two categories and the first presentation of the consolidated income given in the definition of other comprehensive income. At present, presentation and disclosure of other comprehensive income in China is a preliminary reforms, but compared with the international accounting standards still exists a big difference. For these differences, the lack of domestic rely on actual cases of systematic study. In this context, this paper based on cases-study explore presentation and disclosure of other comprehensive income and the differences between China and the International Accounting Standard.The paper used national accounting standards and the specific case of listed companies, focusing on the use of comparative analysis, to analyse the current presentation and disclosure of other comprehensive income. First, this paper introduces the concept of other comprehensive income and the background and significance of presentation, reviews the current status of research in this field. Then, it introduced the basic theory of other comprehensive income. The objective of financial reporting, financial and accounting information quality requirements are three factors to illustrate the presentation of other comprehensive income. Third, the main part of this paper focused on a comparative analysis of international accounting standards, and provided three financial reports of listed companies in2012and visually presented the differences. Finally, the problems found in these studies are summarized, and suggest improvements. Innovation of this paper is to combine the specific case of listed companies and the latest accounting research, comparative studies on presentation and disclosure of other comprehensive income, analysis the problems of presentation and disclosure of other comprehensive income, in order to provides an important reference for the application of other comprehensive income in China.