Does Comprehensive Income Tell us more about an Entity's Performance Compared to Net Income? Study on Romanian Listed Entities

AbstractIn 2013 Romanian listed entities published their first individual financial statements in accordance with the international financial reporting standards (IFRS), prepared for the financial year 2012. IFRS adoption is more than just a restatement or a change in accounting regulation; it involves a new system for performance measurement, a different professional judgment and multiple implications on the whole entity and on its stakeholders. Along with the first-time adoption of IFRS, Romanian listed entities must report a new financial performance indicator, the comprehensive income. Out paper aims to test whether the reporting of comprehensive income in the individual financial statements prepared by Romanian listed entities provides the capital market with incremental information about entity's financial performance