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Performance Reporting Choices after the Adoption of IAS 1 Revised: Comparative Evidence from Europe and the USA

Author

Listed:
  • Federica Doni

    (Department of Business and Law, Milano-Bicocca University, Milan, Italy)

  • Silvia Rossetti

    (Department of Economics and Management, University of Pisa, Pisa, Italy,)

  • Roberto Verona

    (Department of Economics and Management, University of Pisa, Pisa, Italy.)

Abstract

Motivated by the issuance of International Accounting Standard 1 revised, this paper investigates reporting choices on the comprehensive Income of listed companies from Europe and the USA. This research aims at verifying the effects of the requirements issued by the International Accounting Standard 1 revised in improving performance evaluation towards the convergence between European and American Accounting Standards, our research tests the correlation between the choice of income statement format and different variables, such as the size of companies, sign of other comprehensive income, leverage and status of a US listing. This paper also evaluates the effect of comprehensive income on financial performance by calculating the return on equity. The main findings underline that the format of Income Statement and the location of the comprehensive income can be interpreted both as factors that can influence the choices of investors and as a tool available to managers to alter the communication of the firm's performance choices.

Suggested Citation

  • Federica Doni & Silvia Rossetti & Roberto Verona, 2017. "Performance Reporting Choices after the Adoption of IAS 1 Revised: Comparative Evidence from Europe and the USA," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 558-574.
    • Handle: RePEc:eco:journ1:2017-04-66
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    References listed on IDEAS

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    Cited by:

    1. Dirk Beyer, 2018. "A matrix approach to valuation and performance measurement based on accounting information considering different financing policies," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(1), pages 37-61, March.

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    More about this item

    Keywords

    Comprehensive Income; Convergence; Performance;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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