A Utility Analysis On Consistently General Convergence About Financial Statements Presentation

The financial statement has been heated discussed and debated since Enron's financial scandal in 2001 and global financial crisis. In October 2008, IASB and FASB issued the discussion paper about financial statements presentation, Preliminary Views on Financial Statements Presentation. According to the discussion paper, a new opinion, classification and presentation, was given, which will launch a reformation in information classification and presentation of current presentation. In order to strengthen inner relationship among presentations, and to improve the usefulness of the information provided in an entity's financial statements to help users make decisions in their capacity as capital providers, the discussion paper will classify statement of financial position, comprehensive income statement and cash flow statement in terms of business and financing. Moreover, the reformation of financial statements presentation in the paper will has great influence on Chinese financial principle. Because of great change in the scheme and high cost. Authors thought it was essential to process utility analysis of the discussion paper in terms of advantages and disadvantages, and make a suggestion of develop Chinese financial statements and presentation principle in roundly convergence of international principle.Normative researches were involved in this study which was mainly processed by deductive and inductive approaches with case study and questionnaire survey. Basing on summarization and analysis of references, the condition, characterization and disadvantage of financial statements reformation were summarized, then, the reformation problems was given in terms of financial statements'utility analysis, finally, a constructive suggestion of reformation on Chinese business financial statements principle was offered.This study has five chapters. The chapter one is introduction, including background, problems, necessity, innovation and limitation of study. Chapter two is about introduction and summarization of relative theories and previous studies of financial statements presentation. Chapter three is about introduction, analysis and comparison of international and Chinese financial statements presentation principals. Chapter four will process a utility analysis between current principal and that after reformation according to financial statement of Chinese listed companies; this analysis will focus on difference of statements between current classification form and form developed by preliminary views. Chapter five is about convergence strategy analysis of Chinese financial statements presentation standard.There was a novel research in this study, which thought about financial statement presentation reformation from utility analysis. According with Chinese situation and new progress of FASB and IASB on financial statement presentation, it raise reformation suggestion of classification and presentation. In the background of international convergence, it's necessary to process the convergence of financial statements presentation principle; also the reformation result in discussion paper was appreciated. Consequently, According to current economic and society condition, the first step is to strengthen the construction of the basic theories, and then adopt the gradually-advanced reformation for the financial statements presentation. In detail, the model of income statement and cash flow statement could be followed in the views of discussion paper. However, when come to classify statement of financial position, if processed in terms of business and financing instead of factors, it would bring an evolutional impact in financial equation. So author thought that according to current economic and society condition, it should be conducted into the accounting elements in the classification, and then classified in accordance with the discussion paper, divided into business activities , financing activities and tax categories.