The Research On Our Country's Consolidation Scope Of Consolidated Financial Statement

Consolidated financial statement is a science that focuses on practice, and it reflects the operators' choice of the consolidation theories. It is also the concrete implementation of the accounting principle of "the substance over the form" in the accounting standard. From the consolidated financial statement, you can know the relationship between the investors and invested enterprises, and consolidated financial statement reflects the financial condition and operating gains viewing the enterprise group as a single entity on the basis of the requirement of management parties and the investors. To a certain degree, as long as you can understand an enterprise's consolidated financial statement, you can be aware of the future development of the enterprise.Consolidated financial statement is practical choice under the strict theories. The purpose of consolidated financial statement is to reveal the enterprise group's operating condition and consolidated value of the assets. Consolidated financial statement is one of the four major difficult problems nowadays acknowledged internationally and consolidation scope of consolidated accounting statement is its foundation and important prerequisite.No matter in IAS27 or in GAAP issued by our country, consolidation scope is the most important part in the standards, and be put premier. On the other hand, the research on consolidation scope come down to the connotation of control powers in enterprise group, it is not only concerned by holding company and subsidiary, but also paid close attention by investors and creditors.Form the time when our country issued "the temporary formulate of consolidated financial statement" in 1995 on, our country has been modifying the relevant formulate all the time. With the development of market economy system, mergers and acquisition is a trend. Thus a proper consolidated financial statement needs the supervision of the standards. In 2006, our country issued "the Accounting Standard No.33—Consolidated financial statement" which is very meaningful for our country's theories and practice of consolidated financial statement.As we know, to confirm a suitable, rational and legal consolidation scope of consolidated accounting statement, we not only have to research from the aspects of quantity and quality, but also have to combine with the real condition of the country. Comparing with "the temporary formulate of consolidated financial statement" issued in 1995, "the Accounting Standard No.33—Consolidated financial statement" issued in 2006 made a great progress. But because of the dispute in the consolidation scope field which makes the implementation of the accounting standard hard, there is also some problems in the confirmation of the consolidation scope.This article regards consolidation scope as the research object, introduces relevant theories of consolidated financial statement, and makes comparison between Chinese regulations and foreign regulations of consolidation scope after introduction. On the basic of analysis above, I give my own opinion on the consolidation scope of our country's consolidated financial statement. In addition, the article discusses the several consolidation scope concerned special issues including the consolidation of special purpose entity, the consolidation of the subsidiaries whose liabilities exceed the assets, and the relevant problems which occurs while the consolidation scope changes. The thesis can be classified as five parts.In the first part I show the background and meaning of this topic and the research methods as well as the structure of the articleIn the second part, I introduce the consolidation scope concerned concepts and relevant theories of consolidated financial statement. And I also introduce the predecessors' research on this subject and emphasize the relationship between the consolidation scope and accounting information.In the third part, by showing the dispute on consolidation scope of Jiangshan pharmacy, I compare the meaning of control powers and specific regulations and specify the consolidation scope of our country's consolidated financial statement.In the fourth part, by putting forward relevant examples, I analyze the issues of SPE, subsidiaries whose liabilities exceed the assets, and the relevant problems which occur while the consolidation scope changes.In the last part, I summarize the main work and innovation of the thesis, and point out the further research work to be down in the future.