The Value Relevance of Other Comprehensive Income and Its Components

Download or read book The Value Relevance of Other Comprehensive Income and Its Components written by Yousef Jahmani and published by . This book was released on 2017 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The value relevance of comprehensive income, other comprehensive income, and its components were investigated in this paper. Using data of S&P 500 for 2014 and utilizing the pricing model developed by Ohlson, the results suggest that both comprehensive income and other comprehensive income have no value relevance as measured by the coefficient of determination (R2). However, the components of other comprehensive income, such as derivatives, hedging and gains and losses from available for sale securities do have value relevance. The results of this research support the Financial Accounting Standard Board position on disclosure of other comprehensive income and its components.