The other comprehensive income in turbulent time

The aim of the research is to analyze the income statement adopted by Czech companies listed in the prime (main) market of the Czech Republic Stock Exchange, in the standard (free) market and in the start market, when they adopted IAS/IFRS principles. A company's income statement reflects a company's past profitability, and earnings growth is one of the primary determinants of a firm's share price performance. The Financial Accounting Standards Board (FASB) has continued to emphasize a financial measure called other comprehensive income (OCI) as a valuable financial analysis tool. The FASB's goal is to issue guidance to improve the comparability, the consistency and the transparency of financial reporting. Especially in the period of financial crises, OCI measure is also quite helpful to understand the company's situation. On 1 January 2011 in the Czech Republic takes effect the amended Accounting Act that brings a significant change in the use of International Financial Reporting Standards as adopted by the EU for unlisted entities operating in the Czech Republic in terms of separate financial statements. The methodology in the elaboration of this article comes from the author's previous research, which formed the main part of the overall research. The new research was based on the previous one but we have increased the number of financial statements analyzed by including companies of the free market for the year 2011. The attention was focused on the election between one of the two formats of income statement, a theme that creates debates since a long time. Then, we propose some reading hypothesis for any of the findings obtained. In the last part we show the results of empirical research on the income statement of the Czech companies, which adopted IAS/IFRS principles.