Effects of comprehensive income presentation format on non-professional investors' judgement
This study examines effects of reporting comprehensive-income information in three different formats on non-professional investors’ judgements of corporate performance. Comprehensive income is the change in equity of a business enterprise arising from non-owner sources. In recent years, accounting b...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/10203 |
| _version_ | 1811689981994860544 |
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| author | Ung, Xin Hui Tan, Zhen Dian Lee, Biwen |
| author2 | Low, Bernardine Mei Fong |
| author_facet | Low, Bernardine Mei Fong Ung, Xin Hui Tan, Zhen Dian Lee, Biwen |
| author_sort | Ung, Xin Hui |
| collection | NTU |
| description | This study examines effects of reporting comprehensive-income information in three different formats on non-professional investors’ judgements of corporate performance. Comprehensive income is the change in equity of a business enterprise arising from non-owner sources. In recent years, accounting bodies such as the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been concerned with the presentation of comprehensive income in financial reporting. In an experiment, we investigate specifically the effects of presenting comprehensive-income information in a single performance statement of comprehensive income and the effects of including a profit-before-tax subtotal in the statement of comprehensive income on non-professional investors’ performance judgements. We look at four dimensions of performance judgements: management’s effectiveness at managing PPE, investment risk, forecasted financial performance and share price. We provide evidence that the placement of comprehensive income in a single performance statement affects only non-professional investors’ judgements of management’s effectiveness at managing PPE and investment risk while the presence of a profit-before-tax subtotal does not matter significantly. |
| first_indexed | 2024-10-01T05:56:45Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/10203 |
| institution | Nanyang Technological University |
| last_indexed | 2024-10-01T05:56:45Z |
| publishDate | 2008 |
| record_format | dspace |
| spelling | ntu-10356/102032023-05-19T06:16:13Z Effects of comprehensive income presentation format on non-professional investors' judgement Ung, Xin Hui Tan, Zhen Dian Lee, Biwen Low, Bernardine Mei Fong Nanyang Business School DRNTU::Business::Accounting::Income This study examines effects of reporting comprehensive-income information in three different formats on non-professional investors’ judgements of corporate performance. Comprehensive income is the change in equity of a business enterprise arising from non-owner sources. In recent years, accounting bodies such as the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been concerned with the presentation of comprehensive income in financial reporting. In an experiment, we investigate specifically the effects of presenting comprehensive-income information in a single performance statement of comprehensive income and the effects of including a profit-before-tax subtotal in the statement of comprehensive income on non-professional investors’ performance judgements. We look at four dimensions of performance judgements: management’s effectiveness at managing PPE, investment risk, forecasted financial performance and share price. We provide evidence that the placement of comprehensive income in a single performance statement affects only non-professional investors’ judgements of management’s effectiveness at managing PPE and investment risk while the presence of a profit-before-tax subtotal does not matter significantly. 2008-09-24T07:41:09Z 2008-09-24T07:41:09Z 2006 2006 Final Year Project (FYP) http://hdl.handle.net/10356/10203 Nanyang Technological University application/pdf |
| spellingShingle | DRNTU::Business::Accounting::Income Ung, Xin Hui Tan, Zhen Dian Lee, Biwen Effects of comprehensive income presentation format on non-professional investors' judgement |
| title | Effects of comprehensive income presentation format on non-professional investors' judgement |
| title_full | Effects of comprehensive income presentation format on non-professional investors' judgement |
| title_fullStr | Effects of comprehensive income presentation format on non-professional investors' judgement |
| title_full_unstemmed | Effects of comprehensive income presentation format on non-professional investors' judgement |
| title_short | Effects of comprehensive income presentation format on non-professional investors' judgement |
| title_sort | effects of comprehensive income presentation format on non professional investors judgement |
| topic | DRNTU::Business::Accounting::Income |
| url | http://hdl.handle.net/10356/10203 |
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