Improved Earnings Reported Study

With the development of times and economics, accounting environment has changed much and accounting is facing unprecedented challenges. When derivative finance instruments appears and widely implied, more and more items recognized but not realized list on balance sheet but not income statement, so information about an entity's financial position and operational performance offered by traditional income statement can't satisfy users' needs. Historical cost principle, realized-matching principle and conservative principle in traditional income statement have showed their disadvantages; therefore, many accounting standards commitments of different countries brought advices to improve financial performance report. This reform has been the tide.Regarding as actions taken by many countries' accounting standard establishing association and IASC, the reform about traditional performance statement focus on extend the definition of traditional income and adding an new statement (4th financial statement)-Comprehensive income statement, to reflect an entity's real financial performance. On this condition, China should actively exposure income reporting model which agree with our own economic development circumstance. So intent of this thesis is to analyze the possibility of implying comprehensive income statement, thereby try to discuss about how to implement comprehensive income statement now.This thesis is divided into four parts. The first part introduced historical process about income reporting and the significance of income reporting. The second part minutely analyzed the problem of traditional income statement from five aspects, hi order to infer the reform way. The third part introduced the development and implement of comprehensive income statement abroad hi detail, synchronously compared the difference among accounting income, economic income and comprehensive income. The last part mostly clarified the important sense about implementing comprehensive income statement in China and gave some advice about how to push the reform into reality.