On The Financial Reporting In The New Economy

When we enter a new era of" new economy", it becomes a hot topic that how can financial reporting meet users' changing needs. Financial reporting is a natural result of social economic development, and it is mainly motivated by economy factors. The " new economy" is so different from "old economy" that current financial reporting based on "old economy" is becoming out of date. In recent years, many commentators have remarked on what they consider to be a mismatch between information provided in financial statements and the information needs of investors and creditors. Most recently, some have characterized this as a mismatch between "new economy" companies and "old economy" financial reporting. In particular, many have contended that it is for financial statement users' needs. Financial reporting is only the final product of the accounting system. The innovation of recognition and measurement should be taken into account before improving financial reporting. On one hand the new economy created new needs of users', on the other hand it also provided IT tool for dealing with new problems. Researchers have worked out lots of solutions, among them I hold that futurefinancial reporting pattern should be based on current financial reporting, and measurement is the key to solve the financial reporting improvement, and innovation should be set in rational boundary. For our country, it is urgent that we should take measures to phase in the suitable solutions of financial reporting improvement.