The Research On Information Disclosure Quality Of China Listed Company's Segment Reporting

With the world economic integration of the quickening his pace, china's group and listed companies are more and more, the financial reports as all financial information needs of the focuses on the subject. many multi-industries and regions and across borders of the group corporate structure to the financial statements, the consolidated report from the overall give the financial position and operating results, therefore, in a certain extent, can satisfy the needs of some users of financial information. The financial information of a listed company refers to the financial statements, the note to the financial statements, financial explanatory statements on financial conditions and other related reports.Consolidated financial statements, as an important part of the financial information, which, show the overall financial position, operating results and cash flows. Meanwhile, consolidated financial statements covered diversity risks and opportunities, different profits levels and growth trends that internal departments of the group face because of across border, regions and multi-industries operation. Thus, it makes the information users difficult to make an accurate and comprehensive, reasonable judgment. Segment reporting as the complementary of the consolidated financial statements, during 1930s, the United States had encouraged their companies that had foreign business division to make separate accounting information disclosed.Financial Accounting Standard Board (FASB) issued Financial Accounting Standard Statement No.14-Financial Reporting for Segments of a Business Enterprise in 1976. It asked the companies to disclose segment financial information according to industry segment and geographical segments.China's Ministry of finance issued Enterprise Accounting Standard NO.35-Segment reporting in 2006. It requires companies disclose segment financial information based on lines of business or geographic segments. Segment reporting provides detailed financial situations and operation results different segments for financial information users. It can help the users evaluate the company's operation performance, forecast rationally and judge the trend of enterprise development through a concrete analysis of different factors in enterprise.This essay will discus China's Listed Company's segment reporting information disclosure related problems. We divide the essay into five parts: introduction, foreign and domestic literature review; segment reporting relevant theoretical knowledge; segment reporting of the theoretical framework; discuss foreign accounting standards on segment reporting and the improvement of segment reporting guidelines; that segment reporting of information disclosure of listed companies the problems and Related countermeasures is given; conclusions.