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Measuring and reporting income in Europe

Research output: Contribution to journalJournal article

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Measuring and reporting income in Europe. / Goncharov, Igor; Hodgson, Allan C.

In: Journal of International Accounting Research, Vol. 10, No. 1, 2011, p. 27-59.

Research output: Contribution to journalJournal article

Harvard

Goncharov, I & Hodgson, AC 2011, 'Measuring and reporting income in Europe', Journal of International Accounting Research, vol. 10, no. 1, pp. 27-59. https://doi.org/10.2308/jiar.2011.10.1.27

APA

Goncharov, I., & Hodgson, A. C. (2011). Measuring and reporting income in Europe. Journal of International Accounting Research, 10(1), 27-59. https://doi.org/10.2308/jiar.2011.10.1.27

Vancouver

Goncharov I, Hodgson AC. Measuring and reporting income in Europe. Journal of International Accounting Research. 2011;10(1):27-59. https://doi.org/10.2308/jiar.2011.10.1.27

Author

Goncharov, Igor ; Hodgson, Allan C. / Measuring and reporting income in Europe. In: Journal of International Accounting Research. 2011 ; Vol. 10, No. 1. pp. 27-59.

Bibtex

@article{c2227fa7f8c549b38f16bde07b8e68a4,
title = "Measuring and reporting income in Europe",
abstract = "The IASB discussion paper, Preliminary Views on Financial Statement Presentation (IASB 2008), asks whether income should be aggregated and reported as a single comprehensive income figure, and how comprehensive income components should be reallocated. We extend prior empirical evidence by researching 16 European countries and by an extensive examination of impact metrics that include information, measurement, prediction, and conditional conservatism issues. A European setting that comprises substantial variation in markets, accounting rules, and business culture would, ceteris paribus, support differential reporting of comprehensive income. Results, however, consistently support the retention of operating net income as a general decision-relevant metric, with other comprehensive income reported individually and delineated by its unrealized nature. We found no compelling evidence that it should be reallocated into net income by function. Further, reported aggregated comprehensive income reverses the conservative attributes of income and has policy implications for providers of debt capital in a European setting. Results are robust to several firm-specific controls, nonlinearities, the impact of reporting incentives, and for early IFRS adopters.",
author = "Igor Goncharov and Hodgson, {Allan C.}",
year = "2011",
doi = "10.2308/jiar.2011.10.1.27",
language = "English",
volume = "10",
pages = "27--59",
journal = "Journal of International Accounting Research",
issn = "1542-6297",
publisher = "American Accounting Association",
number = "1",

}

RIS

TY - JOUR

T1 - Measuring and reporting income in Europe

AU - Goncharov, Igor

AU - Hodgson, Allan C.

PY - 2011

Y1 - 2011

N2 - The IASB discussion paper, Preliminary Views on Financial Statement Presentation (IASB 2008), asks whether income should be aggregated and reported as a single comprehensive income figure, and how comprehensive income components should be reallocated. We extend prior empirical evidence by researching 16 European countries and by an extensive examination of impact metrics that include information, measurement, prediction, and conditional conservatism issues. A European setting that comprises substantial variation in markets, accounting rules, and business culture would, ceteris paribus, support differential reporting of comprehensive income. Results, however, consistently support the retention of operating net income as a general decision-relevant metric, with other comprehensive income reported individually and delineated by its unrealized nature. We found no compelling evidence that it should be reallocated into net income by function. Further, reported aggregated comprehensive income reverses the conservative attributes of income and has policy implications for providers of debt capital in a European setting. Results are robust to several firm-specific controls, nonlinearities, the impact of reporting incentives, and for early IFRS adopters.

AB - The IASB discussion paper, Preliminary Views on Financial Statement Presentation (IASB 2008), asks whether income should be aggregated and reported as a single comprehensive income figure, and how comprehensive income components should be reallocated. We extend prior empirical evidence by researching 16 European countries and by an extensive examination of impact metrics that include information, measurement, prediction, and conditional conservatism issues. A European setting that comprises substantial variation in markets, accounting rules, and business culture would, ceteris paribus, support differential reporting of comprehensive income. Results, however, consistently support the retention of operating net income as a general decision-relevant metric, with other comprehensive income reported individually and delineated by its unrealized nature. We found no compelling evidence that it should be reallocated into net income by function. Further, reported aggregated comprehensive income reverses the conservative attributes of income and has policy implications for providers of debt capital in a European setting. Results are robust to several firm-specific controls, nonlinearities, the impact of reporting incentives, and for early IFRS adopters.

U2 - 10.2308/jiar.2011.10.1.27

DO - 10.2308/jiar.2011.10.1.27

M3 - Journal article

VL - 10

SP - 27

EP - 59

JO - Journal of International Accounting Research

JF - Journal of International Accounting Research

SN - 1542-6297

IS - 1

ER -