Financial Report Analyzes The Underlying Theoretical Issues

The article tiies to explain the internal limitation, theoretical environment and present situation of financial statement analysis (FSA in short), by analyzing the FSA-related counteracting aspects and their influence on FSA.The analysts shouldn抰 be satisfied with traditional static analysis methods, but further their research into such aspects as the limitation of these methods, methods that are more coherent to the present information demands, the limitation of analysis theory itself and the direction to improvement These research may improve the analysts?work and help them use the analysis result more scientifically for the decision making. The article consists of 4 aspects:infonnation demands, financial statement disclosure, financial statement analysis methods, and the accounting environment in general. The main conclusions are drawn as follows:(1). The internal limitation of FSA is the reflection of common conditions between information demands and supplies;(2). The diversification characteristic of FSA is related with the diversification characteristic of information demands;(3). Through the improvement of disclosure quality, disclosure content and disclosure method, the development in financial statement reporting affects the FSk(4). Financial analysis methods are related with accounting environment;(5). All the changes in the FSA may attribute to the changes in the accounting environment, as well as to those specific facets in this related accounting environmentGraduate ZhengMing FluDirected by: Wei Liu...