Hirst et al. (2004) find that even financial analysts with industry experience distinguish banks’ exposure to
interest-rate risk only when unrealized gains and losses from all the bank’s financial assets and liabilities appear
in a performance statement. Results in Hirst and Hopkins (1998) and Hirst et al. (2004) are consistent with
Brown’s (1997) survey evidence that analysts regard the statement of equity as one of the least useful components
of the annual report.