Other Comprehensive Income: A Review and Directions for Future Research
51 Pages Posted: 2 Jun 2015 Last revised: 16 Dec 2015
Date Written: May 29, 2015
Abstract
Accounting standard setters continue to grapple with conceptual distinctions between components of net income and other comprehensive income (OCI). Bank regulators are dealing with the recommendations of Basel III for Tier 1 Capital, which includes more components of accumulated other comprehensive income (AOCI). Motivated by these standard setting and regulatory debates and changes, I review the literature on the investor and contracting usefulness of comprehensive income, OCI, OCI components, and AOCI. I present ideas for future research, including opportunities arising from Basel III changes to bank regulatory capital.
Keywords: Comprehensive income, Other comprehensive income, Accounting standard setting, Bank regulation, Regulatory capital, Basel III
JEL Classification: M41, M48, G21
Suggested Citation: Suggested Citation