Research On Practising Comprehensive Income Report In China

The income is the core concept of finance accounting. This article has explained the characteristics of the traditional income and challenge it meets in the present economic environment on the foundation analyses of basic intension and extending of the economic income and accounting income. From the choice and revision between economic income and accounting income, it thinks that ideal intensions at comprehensive income should agree with the economics concept, which reaches the equilibrium during the course of repeated game between economic income and accounting income. The theory of comprehensive income give back the deficiencies that economics income is unfit to the measure and decision of accounting ,and make traditional net income obtain economic use,and is sure of the responsibility and the relevance. Comprehensive income is the result of economic income and accounting income adjusting and converting mutually. It represents the development direction of modern income theory.At the same time, working out comprehensive income report based on comprehensive income represents the development direction of modern financial performance report.With the coming of knowledge economy in 21 century, the great improvement in high-technology leads to international economy prosperity, and the innovation of finance brings tremendous risks, which makes traditional income report face endless problems and challenges. Traditional income report is unable to reflect modern enterprise's all sorts of income, especially non-traditional income and could do nothing to control earnings handling of the listed companies . On the other side, considering economic consequences of the accounting standards and the need of"smoothing income"for enterprise, accounting standards institutions permitted some items those can be used to adjust accounting profit to enter balance sheet. As a result, the connection between net asset and net profit that can embody the fortune increase of enterprise was not so clear. All of these led to the improvement of financial performance report. The academic area of accounting and business put forward suggestions of improvement one after another. ASB, FASB, IASB and G4+1 group devote to the improvement of financial performance report. By multilateral efforts, a new performance report, comprehensive income report, appeared and was used in the practice of developed country such as Britain and America.The improvement of financial performance report is imperative .It is worth thinking what should we do. This article reveals that reporting comprehensive income is becoming necessary and feasible. Based on actual situation of China, experiences can be drawn from America and England in practising comprehensive income report to solve the actual problems in financial performance report. We should practise comprehensive income report step by step. In addition, the accounting elements that used in comprehensive income report of China, the way of reporting and the main contents to be revealed are mainly discussed in order that we can find the pattern of reporting comprehensive income adjusted to circumstance of China.