2016 Fiscal Year Final Research Report
The Value Relevance of Net Income and Other Comprehensive Income after the Enforcement of Accounting Standard for Presentation of Comprehensive Income
| Project/Area Number |
26380594
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (C)
|
| Allocation Type | Multi-year Fund |
|---|
| Section | 一般 |
|---|
| Research Field |
Accounting
|
|---|
| Research Institution | Tohoku University |
|---|
Principal Investigator |
|
|---|
| Research Collaborator |
WONG Leon University of New South Wales, School of Accounting, Lecturer
|
|---|
| Project Period (FY) |
2014-04-01 – 2017-03-31
|
| Keywords | 財務会計 |
|---|
| Outline of Final Research Achievements |
The purpose of this study is to investigate whether the value relevance and predictive ability of net income and other comprehensive income has changed after the enforcement of Accounting Standard for Presentation of Comprehensive Income (Statement No.25).To conduct this study, as if other comprehensive income constructed from the items on the balance sheet is used for the period before the enforcement.The result of the value relevance study shows that when net income and other comprehensive income are both available there is no statistical difference in explaining equity returns before and after the enforcement of the Statement. When focusing on predictive ability, which is defined as the absolute forecast error of one year ahead earnings deflated by market value, the result from the difference in difference test shows no evidence that predictive ability has changed after the implementation of the standard.
|
| Free Research Field |
財務会計
|
