Improve The Relevance Of Accounting Information - Financial Reporting And Its Analysis Method

The relativity of the accountancy information is "Accountancy information should conform to the request of the national macro economy management and satisfies the needs of both parties concerned , who are to understand the business' financial standing and the financial result, and a business itself, who is enhancing its inner management. " The efficacy of decision-making through accountancy information is a problem which should be emphasized in China' s future accountancy reform and development, because the accountancy will not be able to produce function in business operation if it can not offer useful information for the society.This paper explores improving the relativity of accountancy information from two aspects: the first is upgrading the current financial report system, for which the author proposes that part of items in the current financial statements should be improved and relevant statements such as overall income statememt should be included; the second is upgrading the current financial analysis method, including development of Du Pont analysis method and revisal of Wale proportion analysis method, for which the author proposes that attention should be paid to the financial analysis, meanwhile enhance analysis of unfinancial index, establish banlance marl record and a set of efficient evaluation system by applying synthetic grade-point method...