Value Relevance of Comprehensive Income in Small and Medium-size Enterprises

Based on the data of annual financial statements in 2012 from small and medium-sized enterprises board (SMEs) on the Shenzhen Stock Exchange, this paper conducts an empirical study through the price model after the interpretation of NO. 3 of CAS had been issued. The study aims at investigating the value relevance between comprehensive income and other comprehensive income, which are the new accounting information in income statement. The results show that comprehensive income and traditional profit index (net income) both have the value relevance. Nevertheless, this relevance of the former is weaker than that of the latter. As the bond between net income and the comprehensive income, other comprehensive income enriches the disclosure contents, but the incremental value relevance does not exist.