The Expected Effects for the Changing in other Comprehensive Income Elements Disclosure Place on Investors' Decisions in Egyptian Business Environment According to Egyptian Accounting Standards' Amendments for 2015

Recently, the Egyptian accounting standard setters have amended Egyptian Accounting standard No, (1) presentation of financial statements for 2015, which required preparing the comprehensive income statement. This step is mainly emphasized the growing importance of other comprehensive income (OCI) elements through disclosing them in clearer place for investors. Therefore, the other comprehensive income's disclosure place has transfered from the statement of stockholders equity to the comprehensive income statement. However, the issue of the other comprehensive income disclosure place is one of the greatest controversial issues in financial accounting literature due to the existence of many different points of views about the effectiveness of other comprehensive income' disclosure place until now. In spite of this, there are few studies that have interested by this issue. Therefore, this study aimed to investigate to which extent the financial statements' users are affected by the disclosure's methods of other comprehensive income components in the financial statements through testing the effect of this disclosure on the change of the cost of equity capital. The study sample included 54 Egyptian listed companies, consisting 270 observations in the period 20082012. In addition to 34 Egyptian listed companies, 68 observations in the fist quarter for the period 20152016 after the application of the latest amendment of the Egyptian accounting standards. Through a set of statistical tests using multiple regression models and some other statistical methods, the overall result of the study showed that, the risk relevance of the other comprehensive income elements' disclosure in the statement of result of operations was greater than the risk relevance of the other comprehensive income elements' disclosure in the statement of stockholders equity with respect to explaining the change in cost of equity capital. This result indicated the increasing of OCI risk relevance for the cost of equity capital when disclosing its components in the statement of result of operations. This means that the statement of result of operations (income statement / comprehensive income statement) is the most influential place on investors' decisions.The researcher believes that the findings of the study results may be of interest to both investors and financial analysts who depend on the disclosure place of financial data to evaluate and make their own investment decisions. Further, the results would also be of the potential interest to Egyptian standardsetters to evaluate the effectiveness of the recent amendments to the Egyptian Accounting Standards in Egyptian capital market.