Research On The Procedures For Preparing A Consolidated Financial Statements

There is no great breakthrough in the theory of consolidated financial statements. Because ofinferior level of skill and scarce operability of CAS, the quality of current financial statements is farfrom satisfactory. It is also an important topic to find a practical way to prepare the consolidatedfinancial statements at low cost.A great number of scholars have compared the chinese accounting standards and theinternational accounting standards, deeply analyzed the theory of consolidation and the scope ofconsolidation, put forward some suggestions to increase the quality of consolidated financialstatements. But few scholars researched on the method of eliminating the unrealized profit ofconstruction project and the consolidated statement of cash flow. There is no theory analysis over theeffect of the regularity of accounting and financial management on the quality of consolidatedfinancial statements.On the basis of introducing the basic theory of consolidated financial statements, I analyze theprocedures of the preparation of consolidated financial statements, in order to help the readers withgrasping the method of preparing the consolidated financial statements; I also analyze somedifficulties in the course of preparing the consolidated financial statements and research for thecauses to these difficulties.With the method of case study, I analyze such issues as erroneous elimination, differentaccounting policy, inadequate disclosure, irregular presentation in the statement of cash flows, whichappear in the process of preparing consolidated financial statements.on the ground of analysis, Isuppose several solutions to these questions.This dissertation is comprised of7chapters: Chapter1introduces research background andresearch significance, Chapter2introduces the research findings of research institutes and scholars.Chapter3introduces the theory of consolidated financial statements. Before2006,we preparedconsolidated financial statements according to the theory of mother company.Now, we preparedconsolidated financial statements according to the theory of accounting entity. the theory of accounting entity agrees that the accounting entity of the consolidated financial statements is theshareholders of whole company group, including the minority shareholders of the subsidiarycorporations.the theory of mother company agrees that the accounting entity of the consolidatedfinancial statements is the shareholders of mother company.Chapter4introduces consolidatedfinancial statements preparation course of company A. Company A has5subsidiarycorporations:company B,company C, company D, company E, company F. Company A controls41independent enterprises, whose scope of business includes the management, maintaining andconstruction of freeway. Chapter5analyzes the shortcomings that exist in the preparation course ofconsolidated financial statements of company A and the causes to the shortcomings, Chapter6provides the solutions to the existing shortcomings and mistakes, such as correctly eliminate theunrealized profit of construction project, provide the complete basic data, check the financialstatements of the subsidiary enterprises,etc. chapter7is conclusion and prospect. The quality of theconsolidated financial statements not only depends on the experience and technique of the personswho prepare the consolidated financial statements, but also depends on the support of the leaders andaccountants of subsidiary enterprises.