{"id":1329,"date":"2017-12-22T14:42:31","date_gmt":"2017-12-22T13:42:31","guid":{"rendered":"https:\/\/frjournal.eu\/journal\/?p=1329"},"modified":"2017-12-22T14:42:31","modified_gmt":"2017-12-22T13:42:31","slug":"comprehensive-income-which-potential-effects-on-firms-performance-evaluation-and-users-decision-process","status":"publish","type":"post","link":"https:\/\/frjournal.eu\/journal\/2017\/12\/22\/comprehensive-income-which-potential-effects-on-firms-performance-evaluation-and-users-decision-process\/","title":{"rendered":"Comprehensive Income: which potential effects on firms\u2019 performance evaluation and users\u2019 decision process?"},"content":{"rendered":"

Marchini Pier Luigi, D’Este Carlotta\/\u00a0Financial Reporting<\/a>,\u00a0Riviste<\/a>\u00a0\/\u00a0Fascicolo: 2-2015<\/p>\n

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The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users\u2019 decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users\u2019 decision process, although it statistically affects Italian listed entities\u2019 performance.<\/p>\n

Keywords:\u00a0<\/strong>Comprehensive income statement, users\/investors, International Financial Reporting Standards (IFRS), performance evaluation, analysts\u2019 reaction<\/p>\n

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