Research On The Improvement Of Income Report In China

With the change of economic environment and financial accounting objectives, the traditional income statement is facing new challenges, and reporting comprehensive income has become an inevitable trend to improve it. The article explains the concept of the income in economic income and accounting income perspectives, expounds the basic theory of the income and the income report from four aspects: current operating concept and all-inclusive concept about the domain of the income, revenue-expense view and asset-liability view about the recognition of the income, the capital maintenance view in economics, the articulation theory of the financial report, and analyzes the influence upon the recognition and measurement of income due to the changes of accounting environment and accounting objective. It introduces the characteristics and the inherent limitations of traditional income determination which bases on historical cost principle, realized-matching principle and conservative principle, then elaborates on the concept of comprehensive income, the breakthrough in the traditional income, and discusses the recognition and measurement of comprehensive income. It makes a brief introduction about the relevant standards of comprehensive income reporting among the Accounting Standard Board(ASB),the Financial Accounting Standard Board(FASB) and the International Accounting Standard Council(IASC),as well as the FASB and the International Accounting Standard Board(IASB)'s latest discussion paper of the cooperative project on reporting financial performance about the part of the comprehensive income report. According to the evolutive economic environment and the new enterprise accounting standard, such circumstances in china already have the basic conditions for reporting the comprehensive income, but there is still a few certain deficiencies with the west. The improvement of income report must firstly connect with the actuality in China, uses the international achievements and experiences for reference reasonably. In the end of the article, it puts forward the suggestions that improve the enterprise income report at the present time in china and gives the outline in the future.