ALIYU Baba Usman
ubabaali3131@gmail.com
+2348065808572
Department of Accounting, Ibrahim Badamasi Babangida University, Niger State. Nigeria
SALIHU Ndagi
ndagisalihu@gmail.com
+2348036935658
Department of Accounting, Ibrahim Badamasi Babangida University, Niger State. Nigeria
MASUD Abdullahi
talk2masud2008@gmail.com
+2348032170149
Department of Business Administration, Ibrahim Badamasi Babangida University, Niger State, Nigeria
FATIMA Uthman Zahra
Umminsalma16@gmail.com.
+2347035622108
Department of Accounting, Ibrahim Badamasi Babangida University, Niger State. Nigeria.
ABSTRACT
The adoption of International Financial Reporting Standards (IFRS) presents a new perspective
of reporting earnings in the Nigerian capital market. Two objectives were set to investigate these
earnings. First, the study investigates the relative value relevance of the Net Income (NI) and
Comprehensive Income (CI). The second objective investigates the incremental value relevance
of Other Comprehensive Income (OCI) relative to the NI in the Nigerian capital market. A
sample of 137 financial firm-year observations covering 2018 to 2022 was examined. Results
suggest that both NI and CI were value relevant on an individual basis, but NI was superior. The
result of the incremental value relevance test showed that OCI provides incremental value
relevant information, but with a coefficient lower than that of net income. One primary
recommendation of the study is to pursue enforcement of presentation of Statement of
Comprehensive Income (SCI) to enhance the level of disclosure and transparency of financial
statement for companies listed on the Nigeria Exchange Group.
Keywords: Relative Value Relevance, Net Income, Comprehensive Income Incremental Value
Relevance