A Comparative Research Of Consolidated Accounting Statements And Summary Accounting Statements

Summary accounting statement was once an accounting statement which was compiled through sorting and collecting by administrative departments of all levels, basing on statements of colleting and subsidiary companies. It was used to assess the financial status of different areas, departments and industries, and satisfy the need of national macroeconomic managing and regulating.Consolidated accounting statement is an accounting statement which regards parent company as the core, the enterprise group as an economic entity, and it is compiled by mergering and offsetting, basing on the individual accounting statements of the group's parent and subsidiary companies. It is composed of consolidated balance sheet, consolidated profit statement, consolidated cash flow statement and consolidated equities, reflecting the whole group's operation results, financial status and cash flow conditions.As more and more enterprise groups have been established in our country, the parent and subsidiary company's benefit has been closely connected. Investors, other stakeholders and enterprise managers urgently need to know the whole group's comprehensive situation, such as operation results, financial status and cash flow conditions. They hope to use the accounting information to judge the competitiveness and future development of the enterprise group, and thus to make correct investment decisions. Therefore, the usefulness of accounting statement is just the problem which deserves most attention now.However, people increasingly find in practice that, it is difficult to accurately know the real financial condition and operation results of an enterprise group as an accounting entity, only according to the financial information provided by consolidated accounting statement, it is because a lot of information about related transations is offset in statement merger process. For example, China national nulear corporation, because of its industy specificity, must exclusively manage a series of business, from nuclear materials exploration, extraction, refining, processing, storage, transport, to selling product to nulear power plant or military enterprises, even concluding the nuclear materals import and export. This kind of monopoly is necessary for national security, but dosen't adapt to fully competitive market economy requiements. It's balance sheet can not reflect the real asset size and equity situation, it's profit sheet can not reveal the real income, expenses, profit and loss. If using it to analyze the performance of the enterprise group per capita, the result may be incredibly low. So the distorted information should be corrected, and the correcting tool could be the summary accounting statement once used in planned economy. As the words going, there has been director of short-inch ruler, so why not using a proper tool of planned economy in a market economy? For an enterprise group, if we compile another set of statements using the form of summary accounting statement, we may make up the shortfall of consolidated accounting statement.This paper compared the consolidated accounting statement and summary accounting statement, and analyzed whether summary accounting statement will make up when consolidated accounting statement can not satisfy the users'need enough. The two kinds of accounting statements have respective advantages, reference value and respective short flaws, especially in actual operation. So we need to make in-depth research to both, find and resolve relative problems, and eventually make out accurate value positions for them.And this paper was finished through the system of'analyzing, comparing, making examples and studying'. Firstly, we analyzed the theory, range, compiling methods and existing problems of the two kinds of statements. Secondly, we compared the two statements to obtain the commonness and discrepancy between them. Thirdly, we analyzed a state holding M group as an actual case, and found the problems existing in using consolidated accounting statement and the possibility of using summary accounting statement. Finally, we draw the conclusion that a summary accounting statement can properly reveal M group's real situation, so using two kinds of accounting statements together in a monopolisitic enterprise which has a larger proportion of insider trading, such as M group, is feasible.