Discussion & Analysis On The Segment Information's Disclosure Of Listed Companies In China

With the development of new and high technology,information transit more convenient, all this makes the international economy a global trend and leads that more and more enterprise group operate in different industry and in different country at the same time. Because influence factors are different for different trades and different areas,its earning capacity, prospect,opportunities and investment risk vary from place to place. The range that an enterprise group operates may be several,more than ten or more than hundreds, spreading all over the world,there are very great differences in the profit rate, opportunities, future prospect and investment risk of every business segment and every graphical segment. The amalgamating financial statement can reflect enterprise's financial situation and management performance as a whole, but its high generality will hide the differences above-mentioned. Under this background,disclosing the segment information by sort arisen according to different business segments or different geographical segments at this historic moment.In March 18,2006,"enterprise concrete accounting standards No. 35 - segment reporting" is issued formally,which indicates segment accounting standards of our country has almost converged with the international accounting standards. But in the practice of the segment information's disclosure, a lot of enterprises do not report the segment information according to the segment reporting standards and the disclosure lacks abidance to standards duly,they report too little segment information, this cause the usefulness of the segment information decreases and this leads lacking due care about the segment information to a certain extent. But the segment information's disclosure counts an very important pole,it is a irrefutable fact improving the segment information's disclosure constantly. Then,what should we draw lessons from the advanced segment information disclosing System aboard? Has the segment accounting standards been abided truly ? What improving in the disclosure of segment information we need? All these questions we must think deeply and carefully now.The motivations of segment information disclosure have the motivation of voluntary disclosure and the motivation of mandatory disclosure. The motivation of voluntary disclosure: In the modern enterprise system,property and management separates,has formed the agent relation between the owner and manager of enterprises,manager ( Administrative authority of enterprises) ,for the sake of relieving the accountability, has the motivation to disclose the segment information voluntarily too,make owner of enterprise understand the information of different product, service and different region, indicating its performance of accountability, and the motivation of mandatory disclosing: based on the weak effective capital market hypothesis in our country at present, the weak effective market reflected the business information in the past,and will make the fast response to new business information, the disclosure of enterprise's information will influence the fluctuation of the security price, investors can utilize unexposed inside information and already information publicly at present to obtain the super profit. But we still should strengthen the disclosure about segment information, in order to meet the...