Business, Management and Accounting
4 years ago

New accounting standards in Canada enhance financial statement transparency and value

Journal of Accounting and Public Policy
Usefulness of comprehensive income reporting in Canada
Kiridaran Kanagaretnam, Robert Mathieu, Mohamed Shehata

Paper Summary

Related papers

Business, Management and Accounting
3 years ago

Stronger Corporate Governance Boosts Compliance with Accounting Standards, Benefiting Investors and Policymakers

Earnings Management
Corporate Governance
Value-based Management
3 views
Business, Management and Accounting
4 years ago

Auditors' Failure Exposes Corporate Governance Flaws, Sparking Calls for Reform

Multilevel Marketing
3 views
Business, Management and Accounting
6 years ago

SEC's Omnipresent Influence Undermines Accounting Board's Mission, Impacting Investors Worldwide

Earnings Management
Management Control
Corporate Governance
3 views

The Canadian Accounting Standards Board introduced new rules in 2005 to make financial statements more transparent and useful. A study on Canadian firms found that reporting comprehensive income, including gains and losses on financial assets, provides valuable information to investors. The study showed that certain components of comprehensive income are linked to stock prices and market returns. Overall, comprehensive income is more closely related to stock prices than net income, but net income is better at predicting future earnings. These findings suggest that the new accounting standards will improve the quality of financial statements for Canadian companies.