The Accounting Information Value-relevance Research Of Parent Company Financial Statements And Consolidated Financial Statements

Since 1940 the United States Securities and Exchange Commission (SEC) requires listed companies to prepare and disclose consolidated financial statements, the consolidated financial statements was used worldwide. The application of the consolidated financial statements solve the problem that single financial statements cannot reflect the Group's overall accounting information, helps investors to analyze and understand the entire business group as a whole the financial position, operating results and cash flow, and other accounting information, There is no doubt about the role of the consolidated financial statements. Worldwide there are two financial reporting disclosure systems:one single disclosure system, only disclosure of consolidated financial statements; the second is a double disclosure system, while disclosure of consolidated financial statements and the parent company financial statements.China's Ministry of Finance promulgated the "Provisional Regulations on Consolidated Financial Statements" in 1995, the first specification of the consolidated financial statements. The formal implementation of corporate accounting standards on the consolidated financial statements prepared in 2007 carried out a detailed disclosure requirements, according to the Accounting Standards and the Commission's information disclosure requirements of listed companies, listed companies must provide a separate consolidated financial statements and parent company financial statements in their annual report, Compared to the old accounting standards, corporate accounting standards made the following improvements:the parent company financial statements using the cost method of accounting for long-term equity investments in subsidiaries, in the preparation of consolidated financial statements will become converted to equity method of this Law; The concept of consolidated financial statements have change from the parent company theory to physical theory; The preparation of the consolidated financial statements were clearly defined scope, emphasis on "control" as if included in the consolidated financial statements of the scope. These improvements make the consolidated financial statements and parent company financial statements clearer division of labor, improve the usefulness of accounting information in decision-making.Decision-useful accounting information, that the value relevance of accounting information research, is an important area about capital markets accounting research, since 1968, Ball and Brown proposed "information content" concept, the first accounting empirical research, a large number of scholars started to study abroad enterprises in different countries on the capital market value relevance of accounting information. when studying of enterprise value relevance of accounting information, Most scholars focused on the relation between accounting information of consolidated financial statements and the stock price, few domestic scholars studied the relationship between the consolidated financial statements and financial statements related to the value of the correlation, This paper focuses on the consolidated financial statements of listed companies and the value of the parent company financial statements about the value of the correlation since the implementation of accounting standards.This paper describes in the introductory part the topics of the background, significance, this study questions, research methods and the framework of this article, reviewed the value of the relevant domestic and foreign research results, and the main points of the studies about the consolidated financial statements at home and abroad. The section about origin of the theory introduce the result of domestic and foreign scholars on research, describes the value relevance of accounting information theory research, the theoretical foundation; analysis the difference of the consolidated financial statements of listed companies and the parent company financial statements. Finally, use pricing models and revenue models to examine the differences about Value of the correlation of China's listed company's consolidated financial statements and the parent company financial statements since the implementation of accounting standards.This paper verify the value of the correlation about the parent company financial statements, affirmed the role of the parent company financial statements, and to verify the difference of value of the correlation of the consolidated financial statements and parent company financial statements, affirmed the arrangements of the dual system about annual financial statements of listed companies disclose, This paper agrees that disclosure of the annual consolidated financial statements and parent company financial statements is more conducive to investor decision-making.