The Cost And Benefit Of Improving The Financial Statements Presentation

With the2007financial crisis, a series of problems exist in the financial statements, the work of financial statements improving has been gain attention from the accounting standards setting organizations. In2010the international accounting standards board (IASB) and the United States of America’s financial accounting standards board (FASB) jointly issued the "Staff Draft of an Exposure Draft on Financial Statement Presentation ". The draft proposes suggestions for improving the financial statements, the objectives of financial statements, the core principles and classification of presentation format, suggested that financial statements should presented by business section and financing section, the income tax section shown separately and increase the presentation of discontinued operation section based on the original financial statement. Accounting standards in China is gradually realize international convergence, in the face of international financial statement reports may change, whether the existing financial statements in China can adapt to new improved statements; if the improvement of financial statements can give the users of financial statements much more useful accounting information; how many cost may be pay to improving the financial statements, these questions need further study.This paper presented respectively, descript and compared the current financial statements in China and the financial statements suggested by " Staff Draft of an Exposure Draft on Financial Statement Presentation", considering that the improvement of financial statements can provide some important information that do not reflect at present statements. The listed Corporation "Co. Hayao" in the balance sheet and income statement to regroup, and analyzes the compilation process encountered difficulties and problems need to be solved, we found that the financial statements of some subjects setting needs to be decomposed to report on the improvement of the financial statements. On the adaptation of the financial statement and a statement of comprehensive income foundation, carries on the analysis to the "Co. Hayao" in the capital and asset structure, solvency, and some indicators of DuPont analysis is improved, to profitability analysis to improve the financial statements. After analysis, the improved financial statements can provide some for certain uses asset information, can also add some more specific financial indicators, but these indexes can use is not high, not enough to change the investors or creditors of the decision. For actualize the improvement of the financial report, whether the government or enterprises, financial personnel, even the users of financial statements, need to pay the corresponding cost for it. The analysis thinks that the revised accounting standards, the classification of financial statements implement, will pay great cost.China should actively participate in but not blindly pursue in the face of financial statements change. On the one hand to pay close attention to the international accounting standards change trend; on the other hand, combined with the actual situation of China, to progressive improve carefully.