Research On The Decision Usefulness Of Other Comprehensive Income And Its Specific Projects

The“Enterprise Accounting Standards Interpretation No.3”document was promulgated by the Ministry of Finance in 2009.The concept of other comprehensive income was officially introduced into China's accounting standards system.The comprehensive income inc lude of other comprehensive income and net profit has become a new measurement standard for evaluating enterprises.The purpose of the disclosure of other comprehensive income is to improve the usefulness of the accounting information in China's financ ial reporting,and to help information users improve the rationality of their decisions.The “Enterprise Accounting Standards No.30—Presentation of Financial Statements”was newly promulgated by the Ministry of Finance in 2014,it is required that the composition of other comprehensive income be classified and presented in the income statement according to whether it can be reclassified into profit or loss.Changes in other comprehensive income standards have achieved convergence with international standards,but it's also a very worthwhile issue to study that other comprehensive income and the presentation of specific projects could provide decision useful information and have been accepted by information users.That is,whether it has reached a substantial convergence.On the basis of combing the achievements of previous scholars,this paper selects the 2009-2016 financ ial data of China's A-share listed companies as research samples to conduct research.Trough the price and return models to empirically test the impact of value relevance what is caused by the presentation of other comprehensive income components.Analyze the results by using the dual difference regression model,which changes in the standards for the presentation of other comprehensive income components on the income statement affec ted the value relevance of accounting information.Information users accepted this change and used the relevant information provided to make effective decisions.In addition,the price model and return model verify the value relevance of other comprehensive income.Consistent with previous scholars' research results,other comprehensive income and net profit can provide decision-making useful information for information users,and their d isclosure has value relevance.On this basis,substituting other comprehensive income into the model according to whether it can be reclassified into profit or loss or its specific projects.The empirical results show that the exp lanatory power of the model gradually increases,indicating that the classification presentation of other comprehensive income and the presentation of the constituent items can provide incremental accounting information and increase the value relevance of accounting information.In the regression coefficients of the empirical model,the part of the reclassification into profit and loss is significant and have a value correlation;At the same time,of the specific components of other comprehensive income,only trad itional items such as changes in the fair value of available-for-sale financial assets and translation differences in foreign currency statements have value relevance.It shows that the users of accounting information are more concerned about the part of other comprehensive income that can be transferred to the profit and loss of the enterprise,and they have not yet achieved comprehensive attention and acceptance of other comprehensive income component projects.