Research On The Compilation Of Group Consolidated Financial Statements Under The New Standards

The consolidated financial statements are always a tough problem of in accounting theory and practice.To adapt to the increasingly complex economic operations,the Ministry of Finance has three times released and revised the consolidated financial statements of accounting standards from 1995 to 2014.There are many deficiencies in Interim Provisions on consolidated financial statements about consolidated financial statements of enterprise groups in 1995 issued by the Ministry of Finance.The Ministry of Finance issued the ‘accounting standards for Enterprises No.33,consolidated financial statements’ in 2006,which revised enterprises consolidated financial statements shortcomings in the previous accounting standards,and further improve the standards of consolidated financial statements and breakthrough the limitation of financial statements of a enterprise group.However,despite the 2006 "Enterprise Accounting Standards No.33,consolidated financial statements" made some advance,there were also many places which could not meet the demand of the combined business or financial statements.Therefore,in order to further improve the quality of accounting information of enterprises,improve the reliability and relevance of accounting information,promote the international convergence of accounting standards,the Ministry of Finance issued a revised version of the "Enterprise Accounting Standards No.33 of the consolidated financial statements in 2014 once again".The revision of the consolidated earnings guidance and the development of consolidated earnings practices are complementary.And,empirically,the revision of guidelines is often to respond to or meet the needs of practical development.So,what are the technological advantages of the consolidated financial accounting standards revised in 2014 compared with the consolidated financial guidelines issued in 2006? Will the new accounting standards in 2014 be sufficient to meet the needs of enterprise groups and deficiencies in the preparation of consolidated financial statements by the group? Although the new guidelines should theoretically have sufficient advantages,they lack sufficient verification in practice.This paper takes a case study as the entry point and analyzes the efficiency differences of the revised guidelines in practice.Considered the existing research literatures focused on the change between the old and new accounting standards and economic consequences of the accounting standards are widely but not deeply.And there are many literatures related concepts,procedures and methods,and preparation of the main types of reports of more concern with the old and new accounting standards,but there are less literatures on the group internal transaction offset processing,long-term equity investment preparation of treatment and treatment of parent company cross ownership offset.Combing the old and new accounting standards in the combined earnings changes and taking M group as the example,these thesis researches three problems include the processing of the long-term equity investment,internal transaction offset processing and holding each other between parent-subsidiary offset processing in the consolidated financial statements.This paper finds that the revised new guidelines have made great progress.In theory,the theory of parent company and entity theory are integrated.In terms of judging standards,the influence of control and control right on the classification of consolidated financial statements is more emphasized,which fully embodies the accounting standard of substance over form.However,there are still the following problems in the preparation of financial report: firstly,the accounting standards lack of impersonal standard definition to control;secondly,the long-term equity investment provisions of the subsequent measurement are not perfect;thirdly,the standards of consolidated financial statements on cross shareholding(incomplete accounting rules are cross shareholding initial vacuum zone);fourth,the accounting method of cross shareholding may lead to inflated profits.In order to further standardize the new guidelines in the group with reporting,we should further clarify the substantive control standards and conditions;improve the subsequent measurement of long-term equity investment accounting norms;improve the standards of accounting for the mutual shareholding between parent and subsidiary companies in the group and further improve the level of professional financial personnel within the company.