Research On The Information Of Financial Reporting And Disclosure Off Financial Statement

This paper makes a comprehensive and systematic analysis on the issues concerning disclosure off financial statements from the perspective of economics. Since FASB defined the concepts of recognition and disclosure, information disclosed off financial statements has developed very quickly, but there have also been emerging many problem related to disclosure off financial statements, because of all kinds of reasons, the research on disclosure off financial statements has not been satisfactory.On the basis of the comparisons attributes of disclosure off financial statements, this paper makes on the attributes of disclosure off financial statements from the perspective of residual control rights. This paper points out that the attribute of disclosure off financial statements is residual control rights in accounting agreement: managements' residual control rights in preparing and providing accounting information is mainly manifested in disclosure off financial statements; The rules in disclosure off financial statements also manifest the residual right of supervision and regulation of securities regulatory and supervisory agencies in different nations.This paper also makes an analysis on the value alternation during the course of an enterprise's intercourse in the society. The author holds the view that the economic activities of an enterprises consist of transactional and non-transactional activities. Non-transactional activities refer to those that have externality and the economic activities of external environment that has a bearing on enterprise, and that the recognition within the financial statements is about the information of transactional economic activities and partial information of the running and management of the enterprise, and other economic activities information is disclosed off financial statements. This paper also makes and analysis on the disclosure off financial statements from the perspective of accounting equation, the setting and definition of accounting elements and accounting measurements.This paper also studies on the property rights and conversion of all kinds of accounting information. Information recognized in financial statements is quasi-public goods because its property rights have been strictly defined; the property rights of information disclosed compulsorily off financial statements have not been strictly defined; and that information disclosed voluntarily is the private goods of management. The conversion between different kinds of accounting information is the process of re-defining the property rights of different kinds of accounting information and the conversion between different kinds of accounting information is subject to many restrictions. The author believes that the developments of rules of disclosure off financial statements are auxiliary tools and transitional phase of developing standards on recognition within financial statements; and the rules of disclosure off financial statements are also a manifestation of the residual control rights of rules-setting bodies; disclosure off financial statements stems from the fact the setting of accounting standards lags behind the economic development and environmental changes; partial information disclosed off the financial statements is a transitional phase of the initial recognition and terminative recognition made by accountants. Information disclosed off financial statements by listed companies is a private order, and it gives birth to the resulting and gradual and system changes of accounting standards.This paper also reviews the conceptual framework of disclosure off financial statements. The author holds the view that there are many deficiencies in the current conceptual framework for financial statements. Conceptual framework for disclosure off financial statements has many functions, but there are a series of difficulties in setting the conceptual framework for disclosure off financial standards. The author also makes some assumptions the conceptual framework for disclosure off financial statements.Finally, the paper studies the disclosure off financial statement in Chinese listed companies. Chinese rules of disclosure off financial statements cannot be linked up well with the standards on recognition within financial statements; China is not in a position to control the setting of rules in IFRS, which is not beneficial to the resulting and gradual changes of accounting standards; Chinese securities market is now in an equilibrium of low level, and the environments for improving the quality of information disclosed off financial statements is not good, the contents of information disclosed off financial statements are not sufficient in China, and there is still a long way to go in developing and perfecting the disclosure off financial statements.