The Interactive Study Of Financial Report Reform And Inancial Analysis System Restructure

Since1980s, the huge changes in operation of enterprises, rapiddevelopment of information technology, innovation of financialinstruments, emergence of knowledge economy and stakeholder theory haveexposed extensively the deficiency of present financial reporting systemwhich focuses on historical costs and prioritizes shareholders’interests. Studies have been carried out by practitioners and academiain many countries to deal with the defects and problems of the incumbentfinancial reporting system.Financial report reform is a research field with fruitfulbreakthroughs and ever-evolving problems which draw considerableattention and exert important impacts. Exiting theory and practice mainlyfall into the categories of standardization research under which reformis carried out in accounting measuring property, financial reportobjectives, accounting information quality and expanding reporting scopeetc. In recent years, empirical accounting, on the one hand, echoed theusefulness of incumbent accounting information and financial reports, buton the other hand it also discovered and verified ‘function lockinghypothesis’. The problems in financial report reform were graduallyexplored from the perspective of financial analysis of the usershenceforth. In2008, the financial report reform advocated by IASB andFASB, which focused on reform in report categorizing, re-categorizing andarrangements, provided inspiration in the financial analysis perspective.Under specific accounting context to meet the needs of financialinformation users, financial reports and financial analysis areinfluenced by subjective changes in context and objective change in users’ need. The thesis mainly focuses its study on accounting environment andobjective; by adopting system research method, dialectical research,theoretical and empirical analysis. Composed of eight chapters, thethesis can be divided into four parts besides introduction and conclusion.The first part （chapter1）reviews defects and reform of financialreports, financial analysis system, the relationship between financialreport reform and restructuring of financial analysis which laysfoundation on the theoretical innovation of this thesis.Part two (chapter3) provides definition and theoretical analysis.This part defines and refines related research objectives in financialreport and financial analysis, outlines the research domain, and probesinto environment-oriented and user-oriented accounting theory to laytheoretical foundation for interactive study between financial reportreform and financial analysis restructuring.Part three (chapter4,5and6) studies the interaction betweenfinancial report reform (FRR) and financial analysis system restructuring(FASS) This chapter is the focus of the thesis and contains the mostimportant innovation of the author. First, the interactive motivationsbetween FRR and FASS are explored from the perspective of interactivemechanism between FRR and FASS. Second, from a theoretical and empiricalperspective, the focus of this part is on historical evolution of FRR andFASS and their interactive relationship in China and the US.Part four (chapter7) analyzes the practical application ofinteractive relationship between FRR and FASS, which is also another mainfocus of the thesis. The Discussion Paper: Preliminary Views on FinancialStatement Presentation by FASB and IASB is appraised and the restructuringbetween FRR and FASS is analyzed during China’s practice convergence withthat of the rest of the world.The innovations of this thesis are as follows: first, the study fills in the gap in interactive study between FRR and FASS by analyzing theinteractive mechanism between the two and adopting historical andempirical methodology. Second, accounting environment in this articlecontains economic, political, legislative and cultural elements. Theauthor analyzes the mechanism and results of interactive influence of FRRand FASS and reaches the conclusion that the economic impact is thedominant factor. Third, by combining the interactive relationship betweenFRR and FASS with accounting environment and needs of information users,thus this article provides a new perspective for research in financialreports and financial analysis system.