On The Comprehensive Income Concept

In past years, accounting group has founded an income measured mode which has been used to now although it was not perfect. The mode was founded on historical cost principle, realization principle and matching principle. The mode is adapted to the economic environment of industrial age and the goal of reporting entrusted responsibility. With the development of the society, the economic environment faced with enterprises is more unsteady. Activities of the enterprise are more complex. Noncommercial activities of the company are more and more, by contraries, realized income is less. The information which is afforded by the conventional mode is less relative to decision of users, the reformation is necessary.The concept of "Comprehensive Income" is put forward aimed at conventional income. It represents the demand of the change of economic environment and users' requirement. Obviously, comprehensive income will be the propeller of the deeper development of financial accounting theory and practice.The article can be divided into four parts. The first part dissertate the foundation of the conventional income mode, historical cost principle, realization principle and matching principle, still the challenge faced with the conventional income mode. The second part is about the theory of comprehensive income which includes definition, characteristic and academic foundation, besides the standards that other countries have established. The third one focuses on the practice of comprehensive income. Firstly, I list the sources of comprehensive income and tell the exact time when should the sources be confirmed. Secondly, I discuss the attribute of active value and ascertain the active value is the main measure attribute of comprehensive income. The fourth part discusses whether comprehensive income can be used in our country and how to bring into effect. Firstly, I believe it is necessary to report comprehensive income. It is the importantpath to satisfy the users' decisive demand. It is the effective instrument to develop the finance market. It is the key step to realize accounting globalization. Secondly, I discuss the effect on the practice of comprehensive income came from political, economy and cultural environment. Finally, I bring forth the plans to push the comprehensive income. The first plan is to set down the standards. The second plan is to report comprehensive income step by step. The first step is to report the other comprehensive income by accessorial form; the second step is to make the two outstanding achievement reports; finally, the single report is demanded.The reformation is a hard task. There is a long road to go through. In the courses, we should practice the report of comprehensive income gradually according to situation of our country, as far as to agree with the international standards.