Our Business Combination Accounting Statements With The Scope Of Research

The consolidated financial statement is one of the most difficult aspectsof financial accounting. The premise of consolidation is to accuratelyidentify the scope of consolidation as it directly affects the accuracy andusefulness of the information provided by the consolidated financial statement.A scientific and rational scope can reduce profit manipulation, increaserationality and comparability, as well as improve the quality of consolidatedfinancial statements. In order to limit such bad accounting practices,higher-quality standards are required.The most important consideration in formulating a high-qualityconsolidation scope is to clearly define the criterion for what may be includedin it. In this study, the author analyzed and compared the concepts of"control"and the regulations in the accounting standards of the United States,IASB and China. The author proposed that the criterion of consolidatedscope is "control" and the consolidation theory depends on the defining of"control".The paper also studied the challenges faced by Chinese enterprisesduring this time when China is shifting from the old to new accountingstandards and analyzed the changes between Accounting Standard No.33—Consolidated Financial Statement and Consolidated Financial StatementTemporary Regulations. In the analysis the author pointed out the problemsthat should be focused on and solved. Finally, the study provides measuresto address these issues and to help improve China's new accounting standardand perhaps to try and perfect it for the further development of the practice ofaccounting in China as well as that of the country's economy.