ArticlePDF Available

أثر التقرير عن عناصر الدخل الشامل الآخر على جودة القوائم المالية

Authors:

Abstract

تهدف القوائم المالية إلى توفير معلومات حول المركز المالي والأداء والتغيرات في المركز المالي للمنشأة والتي تكون مفيدة لكافة مستخدمي القوائم المالية في صنع القرارات الاستثمارية , وفي ظل تنامي الاهتمام بجودة القوائم المالية لتعبر بشكل كامل وموضوعي وملائم عن حقيقة المركز والأداء المالي للمنشأة وذلك مع التوجه العالمي نحو تطبيق معايير المحاسبة الدولية والتي تتجه بشكل صريح نحو إحلال القيمة العادلة كأساس للقياس المحاسبي بدلا من أساس التكلفة التاريخية. وفي ظل أوجه القصور الحالية التي يعاني منها صافي الدخل كمقياس للأداء. فقد تطور مفهوم الدخل الشامل وفقا لإصدارات الهيئات المهنية التي من أهمها إصدار مجلس معايير المحاسبة المالية الأمريكي في نوفمبر 1997 لمعيار المحاسبة المالية الأمريكي رقم (130) بعنوان "التقرير عن الدخل الشامل" بالإضافة إلى قيام مجلس معايير المحاسبة المالية الأمريكي (FASB) ومجلس معايير المحاسبة الدولية (IASB) في 2002 بإعداد مشروع مشترك للتقرير عن الأداء وفقا لمفهوم الدخل الشامل. وبذلك أصبح الدخل الشامل يمثل “bottom line” الجديد في قائمة دخل الشركات ( Ito & Kochiyama , 2014) والذي من شأنه التعبير بشكل كامل وموضوعي وملائم عن حقيقة المركز والأداء المالي للمنشأة ومن ثم تحسين وزيادة جودة القوائم المالية وعملية اتخاذ القرارات.
A preview of the PDF is not available
ResearchGate has not been able to resolve any citations for this publication.
Article
Full-text available
Purpose The purpose of this paper is to analyze the effect of corporate governance practices on firms’ financial performance, as measured by comprehensive income (CI). Design/methodology/approach Using a sample of 237 firms from the Standards & Poor (S&P) 500 index during the years 2004-2009, multivariate statistical analyses are conducted to confirm the authors’ main hypothesis. Findings The results indicate that having high levels of corporate governance culture has a positive impact on a measure of firms’ financial performance, namely, CI. Furthermore, they indicate a positive correlation between a higher percentage of external directors and financial performance, and a negative relationship between number of board meetings and financial performance. Originality/value The main contribution of this research is that good corporate governance strategies deliver superior financial performance for businesses in terms of CI. This serves as a method of value creation, which is the ultimate goal of a business. In addition to the use of CI as an indicator of financial performance, a unique measure of corporate governance level is tested.
Article
This paper contributes to the development of a 'Conceptual Framework for Financial Reporting' as currently being undertaken by the International Accounting Standards Board (IASB). Building on the ideas of 'asymmetric prudence' and the business model it contrasts 'value added' and 'price change' businesses and argues that an entry price is appropriate for the operating assets of the former kind of business whilst a current market value is appropriate for the latter. It notes that both historical cost and current cost are entry values. While accepting that historical cost is likely to continue to be widely used, it questions whether the Conceptual Framework should preclude the use of current cost, and argues that if current cost is to be used, the cost of consumption should be reported separately from holdings gains and losses. The paper advocates the reporting of operating income; and discusses what items of income and expense should be reported in other comprehensive income rather than in profit or loss. It questions whether all such items should be 'recycled' to the statement of profit or loss in a later accounting period.
Chapter
This study examines whether comprehensive income (CI) and other comprehensive income (OCI) influence dividends of Japanese companies. While CI is considered to be the new “bottom line” of income statements of companies, the impact on dividends has not been examined empirically. Lintner (1956. The American Economic Review, 46, 97–113) and subsequent studies predict that only earnings that are more persistent and less volatile are related to dividends. Contrary to this prediction, our findings suggest that both CI and OCI have positive coefficients with dividend changes. Moreover, we further find that negative OCI is more likely to result in lower dividends. We propose several explanations for our findings.
Article
This paper explains the relationship between net income and comprehensive income, on the basis of differences in their recognition. Current accounting standards require disclosure of net income (profit and loss) and comprehensive income. During the 1980s, it was required to disclose multiple income figures adjusted for inflation or price changes. On the basis of historical and international comparative research on accounting standards and a review of accounting literature, this paper clarifies the difference between, and provides a rationale for, the current presentation of income and that in the 1980s. Although multiple concepts of income and multiple concepts of capital were applied, those in 1980s were multiple measurements, which were different from the current accounting treatment. Current accounting treatment can be described as dual recognition rather than dual measurement. As long as other comprehensive income items are recycled, it could be described as dual income concept based on dual recognition is applied under the single capital maintenance concept. The change in fair value included in other comprehensive income will not be directly credited to shareholders' equity, but will be credited through comprehensive income.
Article
SYNOPSIS The volatility in other comprehensive income (OCI) reflects how market-related price movements, such as exchange rate and equity price changes, affect a firm's future profits. Hence, firms with higher volatility of OCI are likely to have higher inherent risk. Using hand-collected data from 2002–2006, we find that the volatility of OCI is positively associated with audit fees and provides significant incremental explanatory power for audit fees over and above the level of OCI and the volatility of net income. We also find that the effect of the volatility of each component of OCI on audit fees is consistent with the prediction of how it might affect a firm's future profits. Our results support recent efforts by the International Accounting Standards Board (IASB) to require firms to present separately OCI components that may affect future earnings from those that may not affect future earnings.
Article
This study empirically examines whether difference in audit quality is reflected in the pricing of other comprehensive income (OCI). Specifically, we first investigate whether OCI measures of Big 4 clients are more value-relevant than those of non-Big 4 clients. Considering different degrees of subjective management judgment involved in the OCI reporting process, we then explore whether the differential valuation effect of OCI between Big 4 and non-Big 4 clients is more pronounced for more subjective OCI components (e.g., minimum pension liability and foreign currency-translation adjustment) than a less subjective component (e.g., marketable securities adjustment). We predict that the aggregate OCI of a Big 4 client is more value-relevant than that of a non-Big 4 client. We also hypothesize that the differential valuation effect between Big 4 and non-Big 4 clients can be attributed to the amount of subjective assumption and judgment required in estimating OCI. Consistent with our predictions, we find that aggregate OCI audited by a Big 4 auditor has incremental information content over earnings, compared to OCI audited by a non-Big 4 auditor. More interestingly, our results also show that the differential valuation effect between Big 4 and non-Big 4 clients is stronger for OCI components of a more subjective nature. Our results are robust even after controlling for self-selection bias, the potential effect of the financial crisis, and other related effects.
Article
Effective February 05, 2001, publicly traded companies are required to disclose audit and nonaudit fees paid to their external auditors. These fee data have been used to test whether auditor independence is impaired when the external auditor provides nonaudit services to a client, usually by examining whether certain earnings characteristics are related to nonaudit fees in ways that suggest impairment. This paper follows in that tradition by testing whether the earnings response coefficient (ERC), a proxy for earnings quality, is associated with engagement profitability. Residual fees derived from a two-stage regression model that prices audit and nonaudit services simultaneously are used to proxy for engagement profitability. If the market perceives abnormally profitable engagements as a threat to auditor independence, then we would expect the ERG to be lower for firms with positive fee residuals. The paper examines the residual fee-ERC relation for annual earnings announcements immediately before and after first-time fee disclosure. We report results for alternative measures of unexpected earnings (I/B/E/S forecast errors and deviations from a seasonal random walk), different formulations of residual fees (as a dichotomous and continuous variable) and different samples. For total fees and audit fees, there is a positive association between ERCs and the level of residual fees. For nonaudit fees, there is only one combination of unexpected earnings and residual fee formulation where we observe a significantly negative association between ERCs and residual fees. The findings for audit fees are consistent with a market that interprets abnormally high audit fees as a signal of a firm's commitment to high earnings quality. The restrictive conditions under which we find a negative association between nonaudit fees and ERCs provide limited support for the contention that perceived auditor independence is impaired by abnormally high nonaudit fees.
Article
I examine the information content of unrealized cash flow hedge gains/losses for future profitability and stock returns. An unrealized gain on a cash flow hedge suggests that the price of the underlying hedged item (i.e. commodity price, foreign currency exchange rate or interest rate) moved in a direction that negatively affects the firm. Based on this inverse relation, I find that unrealized cash flow hedge gains/losses are negatively associated with future gross margin. This association is weaker for firms that have the ability to pass input price changes through to customers. Finally, I find that investors do not immediately price the information conveyed by cash flow hedges. Instead, investors appear surprised by future realizations of gross margin, consistent with the view that a lack of transparent disclosure on future hedged transactions leads to a delay in pricing. These results may inform current policy decisions of both the FASB and SEC.
Article
Using publicly traded bank holding company data from 2008 through 2011, this paper documents that the proportions of fair-valued assets held by banks are positively associated with audit fees. The positive association between audit fees and the proportions of total assets that are fair-valued using Level 3 inputs is greater than its positive association with the proportions of total assets that are fair-valued using Level 1 or Level 2 inputs. These results are consistent with a hypothesized scenario in which audit effort increases in the difficulty of verifying asset fair values. We also document that bank specialist auditors, defined as in Behn, Choi, and Kang (2008), charge lower audit fees to bank clients on average, suggesting cost efficiencies passed to clients as lower fees. However, bank expert auditors charge more for auditing the proportions of total assets that are fair-valued. Overall, the results support concerns expressed by some observers that greater use of fair value measurements for financial instruments will trigger increased audit fees. Data Availability: All data used in this study are publicly available from the sources identified in the text.