The Research Into Enterprise's Consolidated Income Statement Based On The Concept Of Comprehensive Income

The income statement is an important financial statement to evaluate business performance and profitability,which can provide effective decision-making information for the users of financial statements.But,with the rapid development of world economy,more and more companies get involved in the financial activities and compliment non-related diversification.These changes make companies generate new and non-traditional gains and make the income statement unable to evaluate the profitability of enterprises fully and scientifically.So,it is urgent to improve the income statement.Forestry is an important basic industry in our country and listed forestry enterprises have an important position in promoting the construction of ecological civilization.It is of great significance to improve the current income statement of listed forestry enterprises by introducing the concept of comprehensive incomeThis paper first introduces the related concepts and theory of comprehensive income and analyze the improvement of the profit statement by normative analysis.The analysis found that,compared with the traditional income statement,the consolidated income statement can improve enterprise decision usefulness.Secondly,revealing the defects of the current income statement and put forward the improvement measures.Then,set up the comprehensive income statement.Third,with the help of the related research method,using the value relevance test to verify the validity of the comprehensive income statement.Which means,through examining the correlation between the elements of the comprehensive income statement and the closing price of the enterprise stock to evaluate the improvement effect of the income statement.Combined with the analysis of norms and empirical results,we can draw the following conclusions: first,through analyzing the domestic and foreign scholars on the research results of the consolidated income statement and learning the deep understanding of international accounting standards and the relevant provisions of national accounting standards.We foundthat,compared with the current profit comparison,the comprehensive income statement can reflect the real business income level better and can provide the effective decision-making information to the users of financial statements.Second,through analyzing the current income statement,we found it has defects in reporting market environment,basis of accounting theory,factor list and Financial index calculation.Third,make up for deficiencies in the existing income statement,the paper proposes the introduction of comprehensive income concept and correct the theoretical basis of income based on the original income statement,adding accounting elements,excluding the "operating profit" in the daily management of project impact,improving measures in financial expenses under the item of "interest" and setting up a separate sub project and calculation formula of the amendment of the original financial index.Fourth,through adding the introduction of "total profits","comprehensive income","other comprehensive income","earnings per share" elements to build a comprehensive income statement.Fifth,through the empirical analysis,the paper concludes that,compared with the current one's net profit,the consolidated income statement has a stronger value relevance between the comprehensive income and the closing price of the enterprise stock.And compared with the current one's income system,consolidated income statement has a stronger value relevance with the closing price of the enterprise stock,and the same with its net profit and loss.In addition,in order to promote the use of our consolidated income statement,this paper suggests that China should improve the corresponding accounting standards system to clarify the accounting scope and accounting methods;and improve the corresponding laws and regulations in order to standardize the management of enterprises and the behavior of accounting personnel to strengthen internal control;Also should re-build enterprise performance evaluation system,in order to improve their own capital operation capacity,to ensure that corporate capital preservation and value-added,in order to achieve long-term development of enterprises.