Combined Scoping Study

The consolidated financial statement is one of the most difficult aspects of financial accounting. And as the premise of consolidated financial statement, the consolidation scope affects deeply the accuracy and usefulness of the data in statement .A scientific and rational scope can reduce profit manipulation as well as improve the quality of consolidated financial statement.This article regards consolidation scope as research object, at first introduces relevant theory of consolidated financial statement and makes comparison between Chinese regulations and foreign regulations of consolidation scope .Secondly, this article argues and points out a few questions in Chinese consolidated areas principals and some special questions which including the concept of control, overlapped control, special purpose entity and so on. Wish this article will be benefit for the further development of the practice of accounting in China as well as that of the country's economy.This article includes four parts:The first part introduces relevant concepts of consolidated financial statement, discusses the meaning and influence factors of defining consolidation scope.The second part introduces relevant regulations of consolidation scope. It makes comparison among these regulations and makes analysis on them.The third part analyses a few questions about consolidation scope including the concept of control, special purpose entity and so on. It points out shortcomings of existing regulations and brings out relevant suggestion.The forth part talks about some special enterprises in consolidated areas, based on analysis of their special operating model, to make sure whether they should be in contained in consolidated scope.