Case Studies Of Comprehensive Income Disclosure

Disclosure of comprehensive income reflects the usefulness of accounting decision and balance concept, which attracted more and more attention. The concept of comprehensive income was formally proposed in "The Financial Accounting Concepts Statement No.3" which was issued in1980by U.S. Financial Accounting Standards Board. In2009, China’s Ministry of Finance issued "Accounting Standards for Enterprises No.3explains", in which the consolidated income and other comprehensive income presentation and disclosure are described for the first time. In2012, the Ministry of Finance issued "Enterprise Accounting Standards No.30", giving the definition of comprehensive income and other comprehensive income. From now on, the information disclosure of the consolidated income has been experienced five years in China. How has it developed, what problems has arose, and how to evaluate the quality of its disclosure, etc., are worthy of our concern. However, there is still a lack of practical case studies to solve those problems. Therefore, this thesis, based on the use of descriptive, embedded, multi-case study method, would try to explore the current situation of information disclosure in comprehensive income and problems of the disclosure in China at present.Firstly, literatures related to the comprehensive income and the evaluation and information disclosure are reviewed to summarize the status of relevant research. Among them, the study of comprehensive income are summarized in three phases, the literature concerning the evaluation of information disclosure are summarized in two directions. Then, the article elaborated the theory of comprehensive income and entropy method to lay the theoretical foundation for the research behind. Then, the main part of the thesis could be divided into two parts:the first part is based on annual data of companies listed in Shenzhen Stock Exchange in2012. It describes the status of information disclosure in consolidated income from the overall situation, from the industry conditions and from plate conditions, then summarizes the main issues at this stage. Those problems mainly comes from the nonstandard format of disclosure, the errors of data presented, the incomplete statements and the redundant or lack present of other comprehensive income. The second part is based on the entropy method and is to build evaluation system of information disclosure in comprehensive income. Then according to the scoring results among291listed companies of Shenzhen Stock Exchange, some specific companies are elected as typical cases to analyses comparatively. Based on previous studies, the article concludes:the overall situation of information disclose in comprehensive income in China is not optimistic and there are kinds of disclosure issues. Finally, from a practical point of view, this thesis proposes several policy improvements according to the problems found in the study.This thesis, based on multi-case study method and combined with self-built evaluation system, research and analysis the situation and problems of the information disclosure in comprehensive income in China, which are enrich the literature related to comprehensive income. In addition, the evaluation system which based on the entropy method provides some reference to integrate revenue disclosure. To some extent, the result of this study is subjective inevitably because of there is no robustness test of evaluation system and the scoring process is done by hand.