Research On The Comparison Of Consolidated Financial Statement And Its Influence

In recent years, Chinese Corporation system reform and Collectivization management carries on gradually, the modern large company enterprise group constantly emerging, in order to reflect the enterprise group's financial position and operating results Comprehensively and meet the information needs of various types of users, the enterprise group consolidated financial statements are particularly important.Because of it complexity, the consolidated financial statements is known as the four financial accounting problems and has been causing widespread concern in the academic community. However, the different views on minority shareholder rights led to different consolidation theory, and which has affected the consolidation theory choice. Consolidation theory choice relates to the final results of the combined statements and the quality of the provided information. The rational choice of consolidation theory could, to a certain extent, prevent the parent company to operate profit or to distort the accounting information; so as to improve the quality of financial statements of information, making accounting statements can better serve the users of financial statements service.Therefore, in the foundation of analyzing the development and present status of international and domestic, the author intend to study the consolidation theory and it influence by comparing the theory on the theoretical and practical aspects, in order to provide the reference for the consolidation theory choice and further perfecting.This thesis mainly research contents include the following several parts:Firstly, on the basis of the systematic analysis of the consolidation theory current situation at home and abroad, to anatomy the consolidation theory itself from different angle such as the main ideas, theoretical basis, accounting objectives and the accounting information quality characteristic. So as to provide a theoretical basis for reference to further understanding and choosing the consolidation theorySecondly, to compare different processing method of practice guided by different consolidation theory. On this section, the author analyzed the different methods guided by different consolidation theory. This three merging methods are different on how to deal with the net assets of sub-company, the merge goodwill, minority equity and minority interest, unrealized insider trading profits. Through the analysis and comparison, deepen the understanding and awareness this theories on the views of processing method.Thirdly, compare the preparation of statement guided by different consolidation theory by example. Compare and analyze the different processes and results by preparing the working papers of consolidated balance sheet, the working papers of consolidated income statement, consolidated balance sheet, consolidated income statements. Make different characteristics of consolidation theory more clear and more intuitive.Finally, choose consolidation theory in China. On the analysis and comparison above, discuss the current selection and it development trend in China from the aspects of the definition of the accounting elements, the accounting objectives, international convergence. Put forward the reasonable suggestions for the consolidation theory choice.Entity theory in line with the definition of the accounting elements more and it's valuation basis is more reasonable. The entity theory in line with the tend of accounting target more.And it can suppress profit manipulations effectively. So relative to propriety theory and parent-company theory, entity theory has apparent sophistication. It will be better future choices in China's consolidation theories.