China's Financial Reporting Status And Future Thinking

The motivity of the development of financial accounting mainly comes from two aspects : Changes of social and economic environment and changes of the demand of information users . Chatfield, Michael (1989) pointed out that accounting is mainly developed with business requirements of certain period and relates closely to the economic growth . The changes of social and economic environment perfect accounting model while the demand of information users requires the development of the contents of financial report. As a main tool of transmitting financial information outward , financial report plays an important role in economy . The current financial reports have received more and more criticism since 1980's . Information users are confronted by new economic decisions because of new economic phenomenon . Financial report is unadaptable to the changes . So how to improve financial report is a world problem to the accounting profession . The current accounting model and financial reporting system were set up in 1993's accounting reform . Financial reports includes a balance sheet , an income statement , a statement of changes in financial position ( or a cash flow statement ) together with supporting schedules , notes to the financial statements , and explanatory statements on financial condition . The financial reporting system played an important role in China's economy . But macroeconomic and microeconomic environment changed a lot with the development of China's socialist market economy . Meanwhile many new economic phenomena appear with the rapid growth of information technoledge . So how to improve financial reports according to the requirement of socialist market economy and how to meet the demand of information users are urgent problems to the China's accounting profession . The dissertation is based on the basic theory of financial reports . After the research of China's current financial report and the development of economic environment , the dissertation makes some recommendation to the future development of financial reporting system . The dissertation is divided into 3 chapters . Chapter 1 An introduction of financial reports of enterprise The chapter is an introduction of financial report . It analyzes the motive of financial report and qualitative characteristics of the information provided by financial reports. Financial reports include the three parts of basic financial statements , notes to financial statements and schedule of financial statements . Financial statements is the core of financial report while other financial report is important supplementation . The compiling of financial reports depends on the motive of financial reports and qualitative characteristics of the information which financial reports provide. Chapter 2 Research of China's current financial reports The chapter is divided into 3 parts . Part 1 is a brief introduction of China's current financial reports . Part 2 is a review of China economic development . Part 3 introduces the fact and reason that the financial reports are unadaptable to the requirements of information users . It is the changes of economic environments that cause the unadaptability . Chapter 3 Future development of China financial reports The chapter makes some advice of the development of China financial reports through the forecast of future development of China's economy . After the discussion of principles of setting up financial reports system , the advice concentrates on the three areas : segmental report , financial forecast information and off-statement information.