Comprehensive Income Theory In China

Since 1970's in twenty centuries, because of the distinct change of the economic environment and the information need of the user, thus the traditional income recognition mode which is based on historical cost principle, realization-matching principle and conservatism principle has been fluctuated completely. While the research and exercise of comprehensive income theory emerge with the tide of the times.Because of continuous change of objective environment and continuous perfection of comprehensive income theory itself, particularly on February 15,2006, the issue of "the enterprise accounting standard-basic standard", "the enterprise accounting standard No.1—Iventory" and other 37 material standards, there has a new chance to research comprehensive income theory and related problems, and it could have a dual meaning of theory and practice. Though the research of comprehensive income isn't an entirely new subject for our country's accounting theory field,Under this background, this thesis tries to build up a systemic frame to make the research on comprehensive income theory and related problems. Namely it begins with the limit of the traditional income recognition mode, then analyses basic theroies of comprehensive income, and makes a deep discuss about the recognition, measurement, and report of comprehensive income. Finally, it carries on a courageous theory innovation arounding new standard, that is whether comprehensive income should be reported in our country or not and how to report and other related problems..This thesis takes modern ccountancy theories for guide, adopts norm oriented research method, and adds cases and some practice datas in the process of research, for explaining and supporting theories. This thesis is divided into six parts.The first part is a preface. It introduces writing motive, research condition inside and outside, and the structure of this thesis.The next four parts are divided into two sections for the distinct contents.The second, third and fourth part belong to the first section, namely the section of theory statement. This section mainly makes the definition of income, looks back historical evolution of income theories, analyzes the characteristics of the traditional income recognition and the limit of it, then carries comprehensive income theory out. After that, this section makes a systemic summarization of comprehensive income theory from the recognition, measurement, and report, which has been matured in western developed contries. This section mainly bases on summarizations of the researches of domestic and international scholars, but there are also some personal standpoints.The fifth part is belong to the second section, namely the section of theory innovation. Through analysing accounting environment in our country, this section first clarifies the necessities and possibilities of the application of comprehensive income theory. Then it does the tentative research on practice prospect of comprehensive income theory. The author suggests we adopt three steps to report comprehensive income, namely the statement of stockholder's equity in current period, then single income report in the next period, and finally one incorporate report in the future. Especially, the author gives the draft of comprehensive income in the next period.The sixth part is a conclusion. It makes an objective summary of innovations and limitations.