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Usefulness of Comprehensive Income Statement – Preliminary Study on the Example of Companies from the Wig30 Index

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  • Czajor Przemysław

    (University of Lodz, Faculty of Management, Lodz, Poland)

  • Druszcz Piotr

    (Poznan University of Economics and Business,Poznan, Poland)

  • Hendryk Michał

    (The University of Szczecin,Szczecin, Poland)

Abstract

The financial result of a company is undoubtedly the most frequently analyzed category in making economic decisions. The changing needs of financial statements users resulted in the replacement of the classic financial result with the broader concept of comprehensive income, which was regulated in the International Accounting Standard 1 Presentation of financial statements. As a result a statement of the entity’s comprehensive income is created. An important element analyzed by the scientific community is the presentation of the mentioned comprehensive income and its usefulness. The purpose of the article is to determine the impact of introducing the obligation to prepare a statement of comprehensive income on the usefulness of the financial statement. The usefulness has been assessed from the perspective of the form of statement of comprehensive income and the relevance of other comprehensive income’s items as compared with net income.

Suggested Citation

  • Czajor Przemysław & Druszcz Piotr & Hendryk Michał, 2019. "Usefulness of Comprehensive Income Statement – Preliminary Study on the Example of Companies from the Wig30 Index," Financial Sciences. Nauki o Finansach, Sciendo, vol. 24(4), pages 10-26, December.
    • Handle: RePEc:vrs:finsci:v:24:y:2019:i:4:p:10-26:n:2
    DOI: 10.15611/fins.2019.4.02
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    References listed on IDEAS

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    1. Steven F. Cahan & Stephen M. Courtenay & Paul L. Gronnewoller & David R. Upton, 2000. "Value Relevance of Mandated Comprehensive Income Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9‐10), pages 1233-1265, November.
    2. Dhaliwal, Dan & Subramanyam, K. R. & Trezevant, Robert, 1999. "Is comprehensive income superior to net income as a measure of firm performance?1," Journal of Accounting and Economics, Elsevier, vol. 26(1-3), pages 43-67, January.
    3. Steven F. Cahan & Stephen M. Courtenay & Paul L. Gronnewoller & David R. Upton, 2000. "Value Relevance of Mandated Comprehensive Income Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9&10), pages 1273-1302.
    4. Shahwali Khan & Michael E. Bradbury & Stephen Courtenay, 2018. "Value Relevance of Comprehensive Income," Australian Accounting Review, CPA Australia, vol. 28(2), pages 279-287, June.
    5. Kanagaretnam, Kiridaran & Mathieu, Robert & Shehata, Mohamed, 2009. "Usefulness of comprehensive income reporting in Canada," Journal of Accounting and Public Policy, Elsevier, vol. 28(4), pages 349-365, July.
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    More about this item

    Keywords

    comprehensive income; financial reporting;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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