Research On Decision Usefulness Of Comprehensive Income Information

Since 2006 the promulgation of the new accounting standards introduced fair value measurement attribute, the concept of comprehensive income in our country began to sprout,and then in 2009 the Ministry of Finance issued the policy requirements in the total profit statement and statement of owners’ equity of the presentation of comprehensive income and other comprehensive income, comprehensive income in our country started the standardization process of newspaper columns until 2014 January, the Ministry of Finance issued new accounting standards, clear listing Corporation in the profit statement of other comprehensive income will be divided into two kinds of report, so far the other comprehensive income classification problem is done with the international financial reporting standards standards. However, whether the current economic environment in China is to promote the role of comprehensive income,whether comprehensive income presentation is adapt to the development of the capital market, whether the decision usefulness of comprehensive income information is to be improved, needs more theoretical research and practice test.Based on the theory related to the history of comprehensive income, the article through the study on the usefulness of comprehensive income information, first put forward the assumptions, variables and models, after related financial data from 2010-2013 years the Shanghai and Shenzhen two city listing Corporation, the use of price model and return model is modified respectively test the value relevance of income and robustness. The research results show that net income, comprehensive income and other comprehensive income all have the value relevance, comprehensive income showed no strong correlation in the value of net profit, mainly due to the introduction of comprehensive income in our country for a short period of time, investors have not changed and the concept of comprehensive income, and the criterion is not perfect, the enterprise performance evaluation system not involved, so the market is not significant on the comprehensive income information reaction.but the study found that the correlation with other comprehensive income can increase the net profit andstock price. At the same time, the study also found that the extent of reaction degree of the comprehensive income to the loss of business to corporate earnings ratio of is more rapid and more sensitive, comprehensive income stability is higher than the net profit.Finally, according to the empirical research conclusion puts forward the optimized proposal: first of all, should be clearly identified criteria of other comprehensive income of specific projects, improve the other comprehensive income information standard system;secondly, the establishment of the comprehensive benefits of enterprise performance evaluation system, strengthen the comprehensive income information users attention; finally,recommendations to strengthen the supervision of the listing Corporation, to strengthen the training, guidance and propaganda the listing Corporation’s financial personnel.