The Combined Financial Statements Of The Scope Of Consolidation Related Issues

The consolidated financial statement comprehensively reflects the financial position, operating results, and the cash flow in the group which consists of parent company and the subsidiaries. The consolidated scope is the criteria of the consolidated subsidiaries in the group, which means not all the subsidiaries are combined by the parent company. There is high quality requirement about the consolidated scope, because the scope has direct influence to the exactness and the usefulness of the information offered by the consolidated reports. In the recent years, thanks to the economic developing and the arising of the consolidation, the rules of the consolidated scope have been perfected.The new accounting standard in 2006 makes a milestone for the development of the accounting standards. Basing on the changes in the new standards and combining the old standards and the international standards, this essay tries to purpose some advise to perfect the specific rules about the consolidation scope from the theoretic and practical aspects.Firstly, this essay firstly sets the background for the whole text through the introduction of the forming of the consolidated financial statement and its rules in America and in China. Secondly, this essay makes the research about three consolidation theories and the standard of the consolidated scope; and it states in details about the entity theory in our country. Thirdly, this essay compares the related rules in American standards, international standards and Chinese standards. It concludes that the Chinese standards learn from the other two standards in a deep degree, thus it makes a big progress. For example, the Control concept becomes the precondition of the consolidation; the entity theory becomes the dominant mind in the standards because it reflects the nature of the control concept. But there are still some problems in our consolidation standards. Such as it lacks of the rules about the temporary control, there are not enough rules about the special purpose entity, and the expression of some words in the standards is not perfect. Lastly, this essay makes research about three issues in the accounting practice. It includes: the consolidation issues when the consolidated scope changes; the issues about special purpose entity; the issues about the insolvency subsidiary. And the conclusions are: Firstly, the consolidation scope changes according to the adjustment of the economic market. And the new accounting standards lacks of the criteria about the time problem. Secondly, the special purpose entity research matters its concept, its attribute, its history, and its influence to our country. Thirdly, the research refers to the international standards, the old and new standards in our country concerning the insolvency subsidiary, and gives the advice to the shortcomings of the new standards.