IASB IASB IAS IASB E-mail tafujita@ba.ritsumei.ac.jp
IASB SFAS IAS IASB IASB IASOther Comprehensive Income OCI Accumulated Other Comprehensive Income AOCI Comprehensive Income IAS OCI IASB IASB
APBresults of operations par. 17 current operating performances all inclusive income ARB non-homogeneity GE GM
APB APB APB gains& losses revenue& expenses APB unusual nature infrequency of occurrence discontinued operations APB APB
SFAS SFAS IAS SFAS FASB SFAC SFAC
SFAC Statement of earnings and comprehensive income earnings performance for a period pars. 33, 34 incidentalperipheral SFAC earnings GM
OCI FASB SFAS par. 5 Foreign Currency Translation Adjustments FASB Zeff, S. A. equityincome equity income incidentalperipheral
available-for-sale AOCI JWG par, 6 169 OCI reclassification adjustmentsias par. 93 IASB subset Barker R. earningssfac par. 33 operations SFAC par. 83revenueearning
earning process gains performance par bypass non-operating exceptional items GAAP GAAP Barker R. GAAP SFAS
AOCI AOCI SFAS EDINET
par. 13 SFASCash Flow Hedges par. 46 SFAS par. 4 SFAS par. 20 AOCI
SFAS AOCI Accumulated Other Comprehensive Income AOCI
SFAS IAS earnings AOCI AOCI OCI stewardship par. 14
SEC creative accounting numbers gamemulford and Comiskey, 2002, Chapter 1&10 EBITDA
OCI NCI
non-controlling interest NCI availablefor-sale securities R&D OCI Knight F. H. what to do how to do IAS
Statement of comprehensive income Statement of financial position OCI function OCI nature OCI= par.bc50 OCI IASOCI OCI OCI Equity OCI cohesive financial picture
Statement of comprehensive income Business Operating Sales Cost of Goods Sold Gross profit Selling expenses General & administrative expenses R&D Other operating income, expenses A Total operating income Investing Dividend income Realized gain on available-for-sale securities Share of profit of associate B Total investing income Total business income Financing Interest income Total financing asset income Interest expenses Total financing liability expenses The Net Financing Expenses Profit from continuing operations before taxes and other comprehensive income Income Taxes Net profit from continuing operations Discontinued Operations Net Profit Other Comprehensive Income after taxes Total Comprehensive Income Basic EPS& Diluted EPS 1 OCI OCI OCI
OCI OCI JWG JWG JWG offbalance on-balance Accumulated OCI, AOCI IASB JWG ECB Ernst International GAAP 2005 Young
Fair Value Option IAS19 SFAS87 IAS OCI IASB FASB AOCI available-for-sale securities IAS39 par. 72 OCI
R net worth Boulding
Barker R.operational criterion standard recurring Maines, et al. AOCI UFJ R
Barker R. [2004] Reporting Financial Performance, Accounting Horizons,Vol.18,No.2 Boulding K. E. [1962] Economics and Accounting : the Uncongenial Twins in Baxter W.T.et al, Studies in Accounting Theory Sweet & Maxwell Limited Cauwenberge P. et al. [2007] On the IASB Comprehensive Income Project : An Analysis of the Case for Dual Income Display,Abacus Vol. 43, No. 1 Edwards E. O. & Bell W. B. [1995] The Theory and Measurement of Business Income, Garland Publishing, Inc. IASB [2008] Discussion Paper, Preliminary Views on Financial Statements Presentation JWG[2000]Financial Instruments and Similar Items. Knight F.H. [2006] Risk, Uncertainty and Profit Dover Publications, Inc. Maines, et al. [2000] Effects of Comprehensive-Income Characteristics on Nonprofessional Investors Judgments : The Role of Financial-Statement Presentation Format, The Accounting Review, Vol.75, No.2. Mattessich R. [1964] Accounting and Analytical Methods, Schholars Book Co. Mulford and Comiskey, [2002] The Financial Numbers Game, John Wiley & Sons Inc. Zeff S.A. [2002] Political Lobbying on Proposed Standards : A Challenge to the IASB Accounting Horizons,Vol.16No.1, American Accounting Association). Vol.61 No.7. vs Vol.60 No.10 12
What is profit? What is Performance? Comparison of Informative Value : Net Profit vs. Comprehensive Income Takashi Fujita Abstract The IASB in its Preliminary Views on Financial Statement Presentation [2008] has proposed a new format model for financial statements. The Statement of Comprehensive Income requires an entity to present net income, which is to be disaggregated into business and financial activities, and into continued and discontinued operations in relation to each category of cash flows, with the addition of Other Comprehensive Income (OCI). In Japan, both business and academic circles have never shown a favorable reaction to such IASB initiatives, because only net income has been believed to be a reliable measurement of performance. OCI has never been regarded as an appropriate heuristic for decision making. However, the recent financial market crisis has caused big changes of net equity in Japanese companies balance sheets due to sharp fluctuationsofbothstockmarket prices and the exchange rates of foreign currencies against yen. From these changes, we can derive a significant message about the need for market risk management and accounting reports inclusive of OCI. Key words Net income, Other comprehensive income, Accumulated other comprehensive income, IAS 1, IASB s Preliminary Views [2008] * Correspondence to : Takashi Fujita Graduate School of Management, Ritsumeikan University/Professor 1-1-1 Noji-higashi, Kusatsu-city, Shiga 525-8577 Japan E-mail : tafujita@ba.ritsumei.ac.jp