The Research On Quality Evaluation And Case Study Of The Other Comprehensive Income Information Disclosure

<The basic standard of accounting standard for business enterprises>was issued by the Ministry of Finance PRC on February15,2006, in which the Asset-liability view was as one of the basic theory for the first time. It confirms that our Accounting Standard for Business Enterprises realize convergence with International Financial Reporting Standards. Asset-liability view is contrary to Revenue-Expense view.The Other Comprehensive Income was introduced in<Accounting Standards Interpretation for Business Enterprises:NO.3> and Ministry of Finance PRC:<The notice about annual report in2009based on accounting standard by listed companies and non-listed companies>, and the Ministry of Finance requires the enterprises to disclose the comprehensive income and the other comprehensive income in the income statement and statement of owner’s equity, more specific information about the other comprehensive in notes to financial statements, and the format and content of the other comprehensive income. However in real terms, there are many problems in the disclosure of the other comprehensive income.Based on the above mentioned, after reading and studying the present abroad and domestic papers, I set up disclosure of the other comprehensive income quality evaluation, and collect the annual report of A-shared listed companies of Shenzhen Stock Market in2012, evaluate their disclosure quality of the other comprehensive income. Combine the evaluation result to the case analysis method, Collect typical cases to perform an analysis.This paper is divided into six parts:I. Introduction. This part shows the background, significance of this paper, illustrates the structure and framework, discusses the possible innovations and limitsII. Literature review. According to the studies about abroad and domestic on the other comprehensive income and accounting information quality evaluation, summarizes and comments the existing literatures.Ⅲ. The theoretical analysis. This part gives a brief review of the accounting information quality evaluation theory, the other comprehensive income theory and other theories:asset-liability view and information asymmetry.Ⅳ. Present situation analysis and quality evaluation of disclosure of the other comprehensive income information. Firstly, collect the annual reports of A-shared460listed companies of Shenzhen Stock Market in2012. Analyzed and summarized the problems about disclosure of the other comprehensive income. Secondly, set up disclosure of the other comprehensive income quality evaluation, according to the evaluation results, Divide these companies into5levels:excellent, good, general, poor, bad. Analyze the results from horizontal and vertical aspects.Ⅴ. Case analysis. Choose one company from each grades, analyze their disclosure quality of the other comprehensive income information.Ⅵ. Conclusion and enlightenment. Make the explanation of the results and provide advices on how to improve the disclosure quality of the other comprehensive income information.From the evaluation results, about223listed companies have suspected misstatement. Such as:the other comprehensive income in income statement and that in statement of owner’s equity have differences. The main causes of these problems are:1. The company and accounting firm ignore the importance of the other comprehensive income.2. The accounting firm ignore the importance of the other comprehensive income.3.There is misunderstanding between the other comprehensive and capital transaction. Focus on these problems, some strategy’s advices comes:1. Improve the professional qualities of financial staff.2. Enhance the propaganda of the other comprehensive income.3.Defined the concept of the other comprehensive income and capital transaction.4.Set up the equity account " the other comprehensive income"5. Present a brief introduction about the other comprehensive income.Possible innovation:1. set up disclosure of the other comprehensive income quality evaluation, according to the evaluation results, Analyze the results from horizontal and vertical aspects.2. Choose one company from each grades, analyze their disclosure quality of the other comprehensive income information. Limits in this paper:1.The evaluation is subjective.2. The problems are base on the author’s understanding, it is not very objective.