The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies’ investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies’ financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informa- tive content and gives further information for the evaluation of financial performance.

Is total comprehensive income or net income better for the evaluation of companies’ financial performance?

GAZZOLA, PATRIZIA;
2014-01-01

Abstract

The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies’ investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies’ financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informa- tive content and gives further information for the evaluation of financial performance.
https://dspace.vsb.cz/bitstream/handle/10084/101774/er-2014-17-1-13-39-gazzola.pdf?sequence=1
IAS/IFRS, net income, other comprehensive income, statement of comprehensive income, total comprehensive income.
Gazzola, Patrizia; Stefano, Amelio
File in questo prodotto:
File Dimensione Formato  
er-2014-17-1-13-39-gazzola.pdf

accesso aperto

Tipologia: Documento in Post-print
Licenza: DRM non definito
Dimensione 343.41 kB
Formato Adobe PDF
343.41 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11383/1975523
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact