Improvement Of Earnings Reports

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.Many countries' standard-setting boards are improving the traditional financial performance report. For example, ASB added the statement of total recognized gains and losses outside the traditional income statement. FASB put the comprehensive income statement into the system of financial report .IASC requested the enterprises report all recognized gains and losses .The G4+1 thought the enterprises' financial performance report should be listed in the financial performance report that is expanded.On the basis of Introduction and estimate of the suggestion of the standard-setting bodies , the paper provides relative suggestions to our countries' financial performance report in current conditions.Part One Traditional accounting income and the motive of reforming .First this part introduces the concept and the characteristics and the shortcomings of the traditional accounting income. Then on the basis of the objective of accounting, it discusses the motive of reforming the traditional financial performance report.Part Two The basic content of comprehensive income. First, this part analyses the connotation of the comprehensive income and the recognition of the comprehensive income; then this part mainly analyses the recognition and measurement of the comprehensive income; finally the part explores the reports of the comprehensive income.