Study On Elements Of Financial Statements

Based on the normative research methodology, this paper conducts a theoretical investigation of Elements of Financial Statements in accounting theory and their applications. The purpose is to clarify the theory of categorizing and defining of Elements of Financial Statements through the different definitions of the connotation and extension of them, from the information perspective and by summing up and analyzing the main viewpoints of different schools of theories.Specifically, this paper first examines the meaning of Elements of Financial Statements and defines the object, scope and role of the theoretical research, and then probes the Elements of Financial Statements by placing them into the entire system of the Conceptual Framework of Financial Accounting and the system of accounting theory, in order to identify the premise or decisive factor in the logical derivation of the setup of Elements of Financial Statements and the factors which have a significant impact on the setup of them. The research starts with an investigation of the accounting postulates, objectives, targets and basic accounting viewpoints; the research is focused on ascertaining whether they possess sufficient and necessary conditions for Elements of Financial Statements to set up logical derivation. On the basis of the above research, this paper finds that the main logical premise or decisive factors for the setup of Elements of Financial Statements is both the objectives of financial reporting and the asset-liability views.Further research follows the above train of thoughts, compares and analyzes the Conceptual Framework of Financial Accounting in various nations, and draws upon the latest achievements of theoretical research on Elements of Financial Statements, and takes advantage of knowledge in economics, jurisprudence, management science and other related areas to verify the derivative process in the current accounting theory with regard to the setup methods for Elements of Financial Statements and its interpretative meaning. This paper also probes the definitions of assets and liabilities and puts forwards its viewpoints on the categorization and definition of Elements of Financial Statements.