A Study on the Comprehensive Income from the viewpoint of Convergence and Adoption to International Accounting Standards Board

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Spurred by structural economic change, the comprehensive income concept will find application also in Japan. It is not the case, however, that all unrealized items on the balance sheet are also recognized as comprehensive income. This circumstance compels considering why only a limited range of items are recognized as comprehensive income and what significance for accounting purposes attaches to comprehensive income, whose value as accounting information remains subject to dispute. Based on this understanding, this research seeks to clarify the significance of comprehensive income accounting from the viewpoint of income recognition and attribution predicated on showing the facts and circumstances on which grounds specific items are marked to market and value changes included in comprehensive income.In this research focuses on valuation differences on available-for-sale securities. For example, valuation differences on available-for-sale securities held at the end of the period should be included in the income statement or whether the gains/losses should not be recognized until they are sold, based on a decision by management that they will be held and not sold. In other words, when discussing comprehensive income, the issue is recognition concerning the distinction between comprehensive income and net earnings