Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The value relevance of comprehensive income
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2012 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

In this study, we look at the effects of the adoption of the revised IAS 1 rules, which has been in effect since January 1, 2009. The revised IAS 1 requires that all changes in equity, excluding changes in equity arising from transactions with owners, should be recognized in comprehensive income statement. Revised IAS 1 requires companies to report total comprehensive income that is a sum of net income and other comprehensive income. Total comprehensive income includes all unrealized gains and losses recognized under IFRS. Before the amendment, some of the unrealized gains and losses were shown in a statement of changes in equity but not in the income statement. We hope to answer the question whether inclusion of the components of other comprehensive income provides investors with useful information. We investigate if stock prices have an association with the components of other comprehensive income. We investigate how effective are attempts of IASB to increase the relevance of accounting information about corporate income. We hope that results from the study will be of interest to the standard-setter. In this study, we use data from annual reports and year-end reports for companies listed on the Large and Mid Cap segment at NASDAQ OMX Stockholm and that covers the years 2009 to 2011. We use two regression models to test value relevance of components of other comprehensive income.We have found some evidence that the share price statistically relates to such component of comprehensive income as the change of the fair value of cash flow hedges. This can also be interpreted as that the change of the fair value of cash flow hedges has some value relevance. We also found some evidence that the share price significantly associates with winning cash flow hedging position. We did not find that the share price associates with some other components of other comprehensive income.

Place, publisher, year, edition, pages
2012. , 36 p.
Keyword [en]
Value relevance, Comprehensive income, Components of other comprehensive income, Revised IAS 1, Fair value
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-179541OAI: oai:DiVA.org:uu-179541DiVA: diva2:545222
Subject / course
Business Studies
Uppsok
Social and Behavioural Science, Law
Supervisors
Available from: 2012-08-20 Created: 2012-08-17 Last updated: 2012-08-20Bibliographically approved

Open Access in DiVA

fulltext(680 kB)670 downloads
File information
File name FULLTEXT01.pdfFile size 680 kBChecksum SHA-512
db2da885238b6c2bf377f12c89f6eaf1ea1c43bf4802c09a68c29294f920463d4d58b35f024339431b942db54228e683b86e4b46e8e48c4a336b34ab90fc7bf1
Type fulltextMimetype application/pdf

By organisation
Department of Business Studies
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 670 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 772 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf