Accounting Objective And The Innovations Of Financial Report

In the modern society, full and efficient information exchange is a crucial factor in the development of society and economy. With the development of world economy, financial report, as the main means of enterprise conveying information to the outer, plays an increasingly important role. First, it helps to make capital market perfect and to promote the efficient dispose of resource. Secondly, it contributes to maintain and develop the relationships of enterprise with related interest groups. Confronted with the changes in the environment of economy and technology, there are some limitations in financial report, so it is necessary to improve it. In recent years, many countries in the world devote to the research of financial report in order to enhance the relevance and reliability of accounting information. The most influential and representative is the report named Improving Business Reports Customer Focus by American Institute of Certified Public Accountants in 1991. In this report, AICPA emphasizes that the improvement must focus on the demand of customer for information related to make investment and other decision- makings and puts forward several worthy suggestions to improve the present report system. In our country, with the establishment of socialist market economy, people realize the importance of financial report to economy. Government making macro-control policies, enterprise issuing stocks, all this need information provided by financial report. But by now we haven't made systematic research on the field which hinders the advance of economic reform in our country. That's why I choose the subject. Research on financial report must begin with accounting objective, because the latter is the guideline to the former. Accounting objective decides the content and form of financial report. If accounting objective is not clear, financial report will shoot at random. So this thesis involves two aspects: one is accounting objective, the other is the improvement of financial report. This thesis is made up of four parts. Part one: Introduction. First, it gives the definition of accounting objective. Then points out that accounting objective consists of four aspects and makes explanations one by one. Secondly, the customers and suppliers of accounting information are two factors that influence accounting objective. The author discusses the influence of them against the specffic accounting environment accounting characteristics and technical level. Part two: Research on accounting objective. First, the author explains the two representative school of thoughts about accounting objective Accountability and Decision-usefulness. Then make some comparations between them to draw a conclusion that they are outcomes of different environment. Secondly, the author puts forward own opinion on the accounting objective of our country. First of all, the author analyzes the present situation in China, then under this given national conditions discusses the users and the suppliers of information, finally, points outs that in our country, accounting objective should be the integration of two school of thoughts. Part three: The limitation of present financial report. On one hand, it is the inherent attributes of financial accounting that make present report system unable to meet the need of users for information. On the other hand, the changes in the environment decrease the usefulness of financial report. In this part, the author analyzes th...