The Research On The Scope Of Consolidated Financial Statements

How to determine the scope of consolidated financial statement is not only the difficulty in the theory of consolidated financial statement, but also an important question affected the usefulness of the decision-making in consolidated financial statement. Behind US "Enron" event, the main issues were its deep-rooted problem in managerial mechanism, however, the defects of the accounting criterion, especially on the criterion of consolidated financial statement, are the fundamental reason for the company's problem, which have not been promptly discovered by the market, and these finally caused the situation cannot be saved. Thus, we can see that the consolidation scope directly influenced the integrity and usefulness of the information of the statement, while correctly defining the consolidation scope is an important prerequisite for designing consolidation financial statement. Yet, to define the consolidation scope was certainly not an easy task, FASB made great efforts for this, but until now they failed to work out the final consolidated financial statements criteria. Therefore, the research of the consolidated scope has its theoretical and practical significance.This article takes consolidation scope as its research object, firstly introduced related theory on consolidated financial statement, through comparing the advantages and disadvantages and analyzing the development trend of this theory, it finally make sure the consolidation theory which adapted to our country. On the basis of this article, the theory makes a comparison of consolidation scope among international countries and gets some useful inspiration from it. Then, the article carries out research on the problem in consolidation scope, mainly discussed four questions in new criterion, that is the definition of "control", the definition of consolidation scope for complex shareholder, the description which were not included in consolidation scope and the judgment standard for the real control. Moreover, we tried to build a described complete system set by consolidation scope, in order to do our best to make our consolidated financial statement more perfect, so that to promote the development of China's economic and accounting practice.