Income (OCI) in Indonesia

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This study focuses on the impact of IFRS adoption in Indonesia which brings a new look of the Statement of Profit or Loss. The purpose of the study is to test the value relevance of other comprehensive income (OCI) and its components after the adoption of IAS 1 to the Indonesian Accounting Standard, PSAK No. 1 (2009): Presentation of Financial Statements. The revised PSAK No. 1 require other comprehensive income previously presented in the Statement of Changes in Equity, now must be presented in the Comprehensive Income Statement, together with profit or loss for the period. Prior research showed that the location where the financial information is presented, have value relevance to investors. Comprehensive income that is presented as bottom line in the Comprehensive Income Statement makes it easier for investors to understand the combined impact of all transactions that led to the change of capital that comes from company's performance. The research was conducted using a sample of companies listed in Indonesia Stock Exchange, which report other comprehensive income (OCI). The result is consistent with prior research which shows that OCI and its components have value relevance. However, the result indicates weak evidence that the value relevance of OCI and its components has increased after the revision of PSAK No. 1 (2009).

Original languageEnglish
Pages (from-to)133-152
Number of pages20
JournalInternational Journal of Applied Business and Economic Research
Issue number20
Publication statusPublished - 2017


  • Comprehensive income
  • Other comprehensive income
  • Profit or loss
  • Stock return
  • Value relevance


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