Comprehensive Income Accounting Research

With the rapid changes of accounting circumstances, the objectives of financial accounting need to be changed and developed, and the changing leads to the occurring of comprehensive income issues. The comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. According to all-inclusive income perspective, it includes all items reported in net income plus those items by-passing the income statement but affecting stockholders' equity. Based on traditional net income statement, the comprehensive report needs to multiply the conception of income and reflect the change of fair value. In order to reflect the change of income in a period totally, the gains and losses of price inflating and the measurement of derivative financial instruments needs fair value. Being different from the historical cost, fair value accords to the income conception of economics, and fits to the comprehensive income which suits to the objective of the transformation from the accounting income and the economic income.This dissertation is mainly about comprehensive income, including the foundation and the recognition, the measurement and the reporting of comprehensive income. The last chapter provides the analysis and research about comprehensive income in China. Recognition, measurement and report are necessary parts of financial accounting, so we should demonstrate them as a whole, although that may be a difficult thing. The recognition and measurement of comprehensive income are complex and profound, which involve many problems of financial accounting theory such as historical cost principle, realization principle, relevance and reliability, etc.. The recognition and measurement also involve difficult accounting problems, such as derivative financial instrument accounting, inflation accounting, intangible assets accounting and accounting for foreign currency statement translation, etc.. Two main points are innovative: the theoretical foundation of comprehensive income in accounting and economics; the colored reporting model of comprehensive income.