Wpływ informacji o pozostałym wyniku całościowym na intencjonalne kształtowanie raportowanych wyników finansowych

Artur Sajnóg,Tomasz Sosnowski

doi:10.17951/h.2018.52.3.127-135

Abstract

This study examines the impact of other comprehensive income reporting in mitigating earnings management by using discretionary accruals for a sample of 83 industrial WSE-listed companies over the period of 2009–2016. We apply a panel least square model using year fixed-effects regression. We find that other comprehensive income reporting diminishes the extent of managerial earnings activities. Our findings suggest that a comprehensive income statement may have significant and positive implications for preventing aggressive accounting and helps users of financial statements identify earnings management better.

Highlights

The obligation to disclose comprehensive income in financial reporting has enabled the users of financial statements to gain wider access to a company’s information transparency
We investigate the role of other comprehensive income statements in mitigating the management’s actions aimed at reporting a certain level of earnings by using discretionary accruals
The central question we address is whether other comprehensive income (OCI) reporting affects the extent of earnings management

Summary

Introduction

The obligation to disclose comprehensive income in financial reporting has enabled the users of financial statements to gain wider access to a company’s information transparency. This leads to the hypothesis we posit in this paper: other comprehensive income is negatively related to the level of earnings management This supposition results from the conjecture that the disclosure of the OCI components with their changes enables users of financial statements to examine the external and internal determinants of the company’s efficiency more completely and accurate-. This fact is confirmed by the research, according to which comprehensive income reflects occurrences that are. S clearly beyond the managers’ control [Yen, Hirst, Hopkins, 2007, p. 63]

C OCI items that cannot be reclassified into profit or loss

Research methodology

Results and discussion