Study On Comprehensive Income Report

With the development and alternation of accounting, traditional income statement, as a reference to make economic resolution, is far from meeting the present actual demand because of its decreasing amount of information. Therefore lots of effort world wide has been devoted to working out the measures to improve income statement. For example, the U.S.A. and the U.K. ,especially the International Accounting Standard Committee (IASC) have contributed greatly to the reformation in this field so as to innovate the traditional income statement and polish the comprehensive income report in hope of providing the users much more reliable information. The accounting standard in China, though manifesting the ideology of comprehensive income, has not reinforced the established the comprehensive income report. Bearing the diversity of the users using the accounting information, the limitation of present income statement and the priority of complying the domestic practice with the international standard in mind, this paper has conducted a thorough investigation of and an enlightening discussion on the existed improvement on income report both home and abroad in order to shed a little light on inviting more advisable suggestions for the perfection of Chinese comprehensive income report.This paper falls into three chapters all together. In the first chapter, this paper revolves around the origin and development of general income report and put forward the necessity of publicizing the comprehensive income in China. Then the second chapter emphasizes the rudimental theory of comprehensive income report and clarifies the content and the mode of establishing the comprehensive income report in the future China. More exactly, in this chapter this paper figures out the connotation of comprehensive income, in addition to the theoretical foundation of it; consolidated with both the standards applied in the U.S., the U.K. and G4+1 (IASC and the united accounting standard association including Canada, the U.S., the U.K. and Australia) and the standards practiced in China, this chapter also puts forward the author's personal suggestions focusing on the content and mode of general income report in China. The third chapter tries to draw attention on the problems worthy of preliminary effort in constructing comprehensive income report in China which refers to the fact that in the process of establishing comprehensive income report in China, due to lack of definite concept of comprehensive income report it is the first thing to define the term in the beginning and then to compile the accounting standards for the sake of supplying evidence in pinning down the comprehensive income report. Last but not the least since comprehensive income is based on the public recognized value and many subjective judgments and estimation are involved accordingly, which makes the establishment of the comprehensive income report more difficult on the one hand and leave room for taking advantage of the inevitable defects, the improvement of the accountant's professional skill and their career ethics is of significant demand.