Chinese firms urged to separate operating income for accurate financial reporting
The article discusses how a firm's financial performance is mainly judged by its income before tax and net income. In China, these numbers are made up of operating income, investment income, and non-operating income. However, it's important to separate operating income, which reflects the efforts of the company's operators, from capital gains. The researchers suggest that firms should disclose their financial results by separating operating income and non-operating income, and adding separate statements for each.