Research On Value Relevance And Presentation Of Other Comprehensive Income In Real Estate Listed Companies

With constant change of real estate listed companies,the economic activity also presents the diversity and the complexity.The traditional accounting income information is difficult to meet decision-making requirements and the limitations of historical cost measurement attribute are increasingly prominent.In accordance with the requirements of situation,Ministry of Finance makes new rules for other comprehensive income.In theory,other comprehensive income belong to the profit and loss that the enterprise has not yet recognized.By focusing on it,will stakeholders re-judge the intrinsic value of enterprise,make scientific and reasonable predictions and decisions? Can enterprise value be promoted by increasing other comprehensive income?Based on these above,the literature review is used to review the classic literature at home and abroad in the paper.Combined with mathematical statistics analysis,empirical approach,used Excel 2017 and SPSS 22.0,Price Model and Return Model,the annual reports of 77 listed companies in real estate industry are analyzed from 2014 to 2016.From the three angles of net income,other comprehensive income and comprehensive income,the relationship between accounting income and internal value of enterprise is studied to verify the influence of other comprehensive income on the stakeholder decision-making.The result of study is that net income and total comprehensive income both have the value correlation,but its value correlation is weaker than the former.Other comprehensive income has the increment value correlation,because the correlation between other comprehensive income and enterprise value is relatively weak.So I will further explore its root in order to improve the value correlation of other comprehensive income and provide a strong guarantee for maximization of enterprise value.Accordingly,used case study method on the annual report of real estate listed companies,I found that there are some problems with other comprehensive income presentation,such as wrong articulation and misreporting.The main reasons are that stakeholders have insufficient understanding of other comprehensive income and insufficient supervision of information disclosure.However,the number of problem enterprises is decreasing year by year and indicating that the implementation effect of the guidelines has been improved.Finally,based on a study on value-relevance and analysis of presentation problems and causes,the paper puts forward some suggestion to improve the value relevance and quality of presentation for other comprehensive income.Other comprehensive income items are clearly defined in a framework and made them more standardized and comprehensible.Integration of other comprehensive income into performance evaluation system as a financial indicator for measuring profit and loss from non-operating activities.Strengthen publicity,training and guidance on other comprehensive income.Improve supervision of information disclosure and the control of intermediate links.Reduce fair value measurement costs.Improve the ability of enterprise risk management.To promote real estate listed companies to seek greater opportunities for development and realize the maximum of enterprise value as management objectives,provide the necessary guarantee for the stakeholders to evaluate value of enterprise from the root.