Research On International Comparison Of Earnings Per Share

As the business activities become more and more complex, the nonstop development of the security market in our country and the fast formation of global capital market, our government have realized that reducing the differences of accounting standard between our country and the international and promoting international homology of accounting standard is crucial to provide comparable financial information. Based on this, in February 2006, the Ministry of Finance, P. R. China issued the new accounting system and introduced"Enterprise Accounting Criterion No.34-EPS".On one hand, the issuance of this accounting standard can play an important role in directing reasonable collocation of international capital. On the other hand, it can also provide reasonable and scientific earnings per share information for the accounting information users in order to help them make the right investment decision. Nevertheless, since it is the first time for our country to introduce this standard, compared with the international accounting standard and the EPS standard in American, there are still some differences, and it is not perfect yet as some specific regulations are concerned, it is necessary to probe into the improvements that we can make. In addition, it is also worthy for us to discuss about how can the investors correctly use the earnings per share index when they make the investment analysis since the earnings per share index itself has some limitations. Basis on the above considerations, this dissertation outspread its discussion and it can be divided into five parts as follows:The first part is an introduction. It mainly reviews the development history of earnings per share standard in countries all over the world. In the second part, it discusses the information content and the limitations of earnings per share index, which provide a basis for the following parts. In the third part, the author analyzes the homologies and differences of earnings per share standard between our country, international regulations and the American. In fourth part, based on the differences mentioned in the third part and the limitations discussed in the second part, the author provide some advice in order to perfect the new earnings per share standard. In the fifth part, this dissertation offers some suggestions to the investors about how to correctly use the earnings per share index when they make the investment analysis since the earnings per share index itself has some limitations.