Research On Consolidated Income Presentation Of Chinese Listed Companies

In the context of the world economic globalization, the rapid development of China’s market economy has developed rapidly and the market environment has changed and a variety of financial instruments are used widely, resulting in traditional financial statements can not fully reflect the true performance of the enterprise situation and are unable to meet investors’ overall understanding of corporate real demand for performance information. Due to the introduction of the notion of comprehensive income, the quality of financial information of listed companies has been significantly improved to help users of financial statements to better understand the real operating conditions of the enterprise information. Consolidated income theory is a theoretical breakthrough of traditional income theory, because it broke through the accounting information reliability requirements and it is consistent with the balance concept, the profit and loss account over view of the capital remain theoretical. It is also the needs of economic globalization to report the consolidated income needs and it helps to improve the international comparability of accounting information. It is conducive to the healthy development of China’s securities market and is conducive to strengthening the accounting of derivative financial instruments.2014Ministry of Finance issued the "Enterprise Accounting Standards No.30-Financial Statements" clearly defines other comprehensive income, comprehensive income items of other comprehensive income items required by the nature of the distinction between the presentation. Therefore, how to list other comprehensive income reporting and disclosures in companies’reports will have the feasibility and necessity of the study under the new guidelines. At the same time, enhancing the reporting and disclosures of comprehensive income in our country has practical significance. It contributes to our country keeping pace with the international accounting standards and it also has a positive effect on healthy development of China’s capital market.As China Accounting Standards for Enterprises provides for the principle only to items of other comprehensive income previously and it did not make specific provisions to identify specific projects, which lead to many problems of listed companies in the consolidated income presentation and disclosure. To solve this problem a random sample of2013annual reports of Chinese listed statistical analysis of the data one by one, through statistical analysis of the results of listed companies in China in terms of comprehensive income presentation of the problems and put forward constructive suggestions for the problems identified. In this paper, the theory of the development of comprehensive income is researched it revolves understanding the concept of comprehensive income, the connotation and the characteristics, and the relevant provisions of China’s accounting standards on the consolidated income. Then this paper mainly through the annual reports of listed companies the latest data for statistical analysis,conclude that disclose comprehensive income presentation needs to be further standardized through the method of induction and deduction and put forward reasonable proposals for the existing problems and imaginary of proposing to the other comprehensive income account mention risk reserves.In this paper, comprehensive income presentation issues are studied through five parts in China:Part one describes background and significance of comprehensive presentation issues, raises research ideas by literature reviewed in this article, summed up the main content of this paper, and pointed out the innovation.Part two tells the theoretical basis of comprehensive income presentation. In this part it introduces the definition, characteristics and components of comprehensive income under the new criteria. It elaborates on the recognition, measurement and disclosure of accounting standards, and then describes the theoretical basis of the presentation of comprehensive income.Part three lists issues of companies in the consolidated income presentation and analyses causes. It uses this data of annual reports of listed companies and statistics, pointing out the listed company consolidated report problems and analyses the causes.Part four gives some suggestions to improve the consolidated income presentation of listed companies. Based on analysis of the third part, this section focuses on how to improve listed companies comprehensive income presentation and disclosurePart five concludes the paper to draw conclusions, and proposes future research priorities and directs the next step.