Does the reporting location of other comprehensive income matter? The investor's perspective

Xin Wang, Haiyan Jiang*, Meiting Lu

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Citation (Scopus)


In the context of changes mandated by the Chinese Ministry of Finance in January 2009 regarding the location in which other comprehensive income (OCI) is reported, this paper finds that reporting OCI on the performance statement significantly improves its value relevance. The improvement is driven by two OCI items: unrealised holding gains/losses on available-for-sale securities and the share of other comprehensive income of investees under the equity method. Our results show that the OCI reporting location matters, which supports the psychological perspective that investors pay more attention to salient information. Our findings lend strong support to the approach of standard setters in reporting OCI on the performance statement.

Original languageEnglish
Pages (from-to)546-555
Number of pages10
JournalAustralian Accounting Review
Issue number3
Early online date26 Apr 2018
Publication statusPublished - Sep 2019


Cite this