The Research On Optimization Of Financial Statements Analysis Index Of ZJY Foundation

Foundations are playing an increasing important role in our society with its development in recent years, and they have been critical in utilizing resources, providing public services, promoting charitable causes, generating fiscal revenue, and helping the government in various problems. However,"The Guo Meimei" and " The Usury from Song Qingling foundation" incidents revealed to us that there are still problems inside the foundation system, for example, the lack of financial standards, the corruption and embezzlement, the distrust from public, all of which have a negative effect on charitable contribution and further, the charitable cause. What are the measures to gain trust from public and to solve the above problems has been a big concern for both theorist and practitioners.The fact that foundations are non-profit organization means that it is hard for foundations to develop the revenue-centered evaluation system like ordinary corporations. The existing financial statements mainly provided financial information that could be measured in currency; ratios calculated based on which could not fully meet the requirements for performance analysis. In order to ensure the information transparency and external oversight, it is necessary to develop a financial statements analysis index system that takes into account the foundations’ typical features and the needs from external information users.This thesis first assumes that financial statements analysis system is based on some theories. Then, through carefully studying the existing financial statement indexes, this thesis analyzes the current problems and their reasons of those indexes. Third, by gathering desired performance information from information users, this thesis comes up with a thought to perfect financial statements indexes, and designs a method to perfect the indexes from five perspectives-mission accomplishments, regulation compliance, financial performance, public impact, and society development. Finally, using quantitive and non-quantitive factors, this thesis discusses the supporting framework to implement those indexes, taking into external users desired information.This thesis is divided into five parts. The first part provides background information, summarizes foundation financial statement analysis related paper, and discusses foundations’lack of financial statement based performance evaluation. The second part presents the main argument and supportive theories, along with the definitions of foundation and its characteristics and its functions, the importance of the non-profit financial statements analysis related theory to this thesis in coming up with methods to perfect financial statements index system, and some fundamental theories. The third part analyzes the existing problems and their reasons through a study of " ZJY foundation ". The fourth part presents methods to perfect financial statements indexes from five perspectives-mission accomplishments, regulation compliance, financial performance, public impact, and society development. The fifth part presents suggestions to implement the financial statements index system from four aspects-accounting principles, external oversight, internal management, and internal control.