Research On The Presentation Of Comprehensive Income Information

"Relevance"is considered to be the key quality character of the income information under the"Decision Usefulness View". In order to make up the shortcomings of the traditional income information and enhance its usefulness, west countries represented by U.S. posed the concept of comprehensive income, and released new accounting standards in which the comprehensive income is required to be presented. New enterprise accounting standards were released in China in Feb. this year. The current income recognition model of our country is discussed in this paper on the base of analyzing the latest standards and the necessary of presenting comprehensive income information in our country are also provided. Finally, a two-stage newly suggestion is proposed to begin the reform of presentation of comprehensive income in China. This paper is divided into four parts.In the beginning, series shortcomings of the income information under the traditional model based on the historical cost principle, the realization principle and the matching principle and the stability principle are discussed. And then we come to a conclusion that presentation of comprehensive income information is the choice under the"Decision Usefulness View".In the second part, by comparing with the concept of net income under traditional model, the concept and the characters of comprehensive income are defined. And then the theoretical value, including having more economical value, supported by the clean-surplus theory from financial side, the all-inclusive income view and the articulation theory between financial statements, of presentation comprehensive income information is analyzed.In partⅢ, FAS 130 of FASB is introduced and some different permitted approaches of disclose the comprehensive income information are demonstrated including the two-statement format, the one-statement format and the statement-of-changes-in-equity format. At the end of this section, some useful conclusions are argued.In the last part of this thesis, the necessary of presentation of comprehensive income information in China is firstly analyzed, continued with the newly suggestion of how to present the comprehensive income information."Gains"and"losses"can be set as the same important element of the income statement as"income"and"expense"in order to make up the element-setting shortcoming of the current income statement. A two-stages reforming project under the latest standards is given, and the items and the formats of each stage are discussed in detail. At last, the matching problems of presentation of comprehensive income information, including the standard making, the perfect of the taxing law and the social auditing, are stated.