Research On The Practice Of Consolidated Statement

Based on the International Accounting Standards and FAS (USA), the thesis discussed the methodology of consolidated statement, consolidation theory, consolidation scope and consolidation procedure, etc. which are concerned the hottest topics of consolidated financial statement. In addition, the researcher provides in deep analysis of these problems when the new standards apply in China.In part one, the author first reviews three main ideas regarding the theory of Consolidated Statement. Considering the advantage of international standards as well as national situation, the practical theory was chosen to be the base-stone of the Consolidated Statement Practice in China.The second part mainly discusses the topics of Control. By comparing the New with the previous standards and reviewing some sophisticated practice in the International market, the new development on Consolidation Scope was discussed as applying the new standards. Then, nine recommendations for the existing problems were put forwarded as possible solutions.In the third part, the paper compares two Enterprise Consolidation methodologies and the related efficiency, then reaches the conclusion that the current situation of China determined the combination of Purchasing theory and Equity theory to apply the new standards. Some examples of Consolidated Statements were given to illustrate the practices under two different methodologies.Besides, based on the hands-on working experience on the Annual Report and Interim Report of a listed company for over 8 years, the researcher reviews some typical problems met in the applications of the new China's Accounting Standards, with in-depth discussion on the aspects of"consolidation for Operating loss, consolidation of insolvent/excess deficit subsidiaries, Consolidation of entities with direct and indirect shares, and elimination of reserves accrued by subsidiaries in consolidated financial statements .