Research On Value Relevance Of Comprehensive Income In Manufacturing Listed Companies

At the beginning of 2014, Chinese accounting standards was revised in a large-scale.This revision is not only to adapt to the development of the market economy with Chinese characteristics socialism,and to take a step for the convergence of international accounting standards.Report of comprehensive income in China has implemented five years,the Ministry of Finance requires that the comprehensive income information is disclosured as detailed as possible in this revision.This also shows that the comprehensive income information is regarded as one of the important work in the construction of China’s accounting standards.Therefore, Chinese scholars regard the comprehensive income information value relevance as an important issue in-depth inquiry.This paper is based on previous scholar academic research, we chose the year 2004 to the year 2013 of financial report data on manufacturing listed companies, compare comprehensive income with net income in significant correlation coefficient testing and regression models fitting goodness, and does research on value relevance of comprehensive income in manufacturing listed companies. According to the results of the regression analysis:The presentation of comprehensive income information will not weaken the value relevance of net income, The value relevance of comprehensive income has reflected in the net cash flow from operating of next year and the net income of the next year, and in the current implementation, the comprehensive income information value relevance showed an increasing trend.All in all, the implementation of comprehensive income report has been made significant progresses, comprehensive income information plays a role in improving the structure of income statement. However, due to some reasons, there are some limitations of this paper.It is need to strengthen the fit of manufacturing industry characteristics and models, and provides reference for the research of comprehensive income information in manufacturing listed companies.