Financial Reporting Cosmetic Research

This thesis is composed of five parts: introduction to the status of the research, the definition of coloring financial reporting, theoretical and practical analysis of coloring financial reporting, positive analysis and case study, and the conclusion.In the introduction, the author presents the backgrounds and incentive of this thesis and briefly summarizes the literatures both home and abroad.The second part consists of the definition of coloring financial reporting, a comparative analysis of coloring financial reporting and fraudulent financial reporting, and the meanings of coloring financial reporting. Compared with fraudulent financial reporting, the author defines coloring financial reporting and points out the positive influences of coloring financial reporting.The third part includes theoretical and practical analysis of coloring financial reporting. The author analyzes the implications of generally accepted financial principles, ways in dealing with asymmetric information, and the efficiency of capital market. In doing the practical analysis, the author summarizes means of color ing financial reporting used by many firms, for example, choosing the appropriate type of transaction, timing transactions, changes in accounting policies and accounting estimates, off-balance financing, management of footnotes to financial statements, etc.The fourth part centers on financial reports of two public traded corporations. The author studies their means of coloring financial reporting and makes a simple comparison.The conclusion: we should encourage Chinese corporations to color financial reporting moderately.