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The Relevance Of Comprehensive Income Compared To Net Income For The Measurement And Presentation Of Company Performance

Author

Listed:
  • FIRESCU Victoria

    (University of Pite?ti Faculty of Economic Sciences and Law)

  • BONDOC Maria Daniela

    (University of Pite?ti Faculty of Economic Sciences and Law)

Abstract

The main objective of our research is to highlight the volatility of comprehensive income compared to the net income in assessing company performance. The empirical study is performed on a sample of companies listed on the Bucharest Stock Exchange applying IFRS in 2012-2015. We carried out a positive research using the following methods: literature review, data collection from the financial statements of the studied companies, mathematical and statistical calculation. The volatility of comprehensive income was approached both dynamically and transversally. We calculated and analysed the relative standard deviation for the companies proposed in our survey in order to determine deviations from the average of comprehensive income and net income. The obtained results invalidate the hypothesis that the comprehensive income is more volatile than the net income.

Suggested Citation

  • FIRESCU Victoria & BONDOC Maria Daniela, 2016. "The Relevance Of Comprehensive Income Compared To Net Income For The Measurement And Presentation Of Company Performance," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(44), pages 71-82.
    • Handle: RePEc:aio:aucsse:v:1:y:2016:i:44:p:71-82
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    File URL: http://feaa.ucv.ro/AUCSSE/0044v1-007.pdf
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    References listed on IDEAS

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    1. מחקר - ביטוח לאומי, 1990. "Volume 2," Working Papers 61, National Insurance Institute of Israel.
    2. Jean-François Casta & Bernard Colasse, 2001. "Juste valeur," Post-Print halshs-00669417, HAL.
    3. repec:dau:papers:123456789/1334 is not listed on IDEAS
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    More about this item

    Keywords

    comprehensive income; net income; performance; IFRS; volatility;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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