A Study On Value Relevance Of Other Comprehensive Income

The Chinese accounting standards for other comprehensive income disclosure are constantly developing.In 2009,OCI and CI is required by Enterprise Accounting Standards Interpretation No.3 to be listed in the profit statement and the detailed items are required to be listed in the note of profit statement;In 2014,OCI is required by Enterprise Accounting Standards No.30(Financial Statement Disclosure)to be disclosed as reclassified and non-reclassified in profit and losses in the next period.The revolution reflects that the information content contained in other comprehensive income is more emphasized.This study is based on the innovation of the corporate accounting standards in 2014,into the Shanghai listed company statistics from 2011 to2016,to study whether the other comprehensive income new presentation format have improved the value relevance of other comprehensive income,comprehensive income and its reclassified detailed items.With the price model in empirical study,it is found that OCI and CI is significantly relevant and the relevance is increased;while except the gains or losses of the adjustable changes in the fair value of the financial assets is manifest and decreased;the value relevance of reclassified OCI other detailed items is not increasing its value relevance.Based on the findings,this paper suggests that accounting standards further improve the definition of other comprehensive income and its detailed items,and standardize the classification criteria.