Accounting Research On Segment Report

The once largest energy company in U.S.— Enron has collapsed at the end of 2001, andSPE (special purpose entity )which leads to this incident was still beyond the financial reportin the whole course. All of these above have shaken the public confidence to the GAAP. Theweakness of consolidated financial statements on disclosure of SPE compelled us to ask foranother way—segment report. Our country begins to examine our listed companies after theEnron Corp's bankruptcy, and find from it, though we standardize the segment report morethan once, it is still very difficult to find useful segment information in the annual report ofthe listed company. So the security market of our country may contain with enormous crisissimilar with Enron.This paper regards Enron incident as the source of studying, announce the tremendousinfluence that SPE cause through the review of the case of Enron. Then FASB is devoted toimproving the consolidated accounting policy in order to reveal SPE, but find that there areown defects on this field. However, when we treat SPE in terms of segment, find that thesegment report can carry on effective disclosure to SPE. But, in this course, we have toconsider the particularity of SPE and economic consequence that may be caused. In the nextpart, we receive the lesson form the Enron, pay attention to the situation of the listed companyof our country. This paper investigated the segment report of our country form differentaspect, including: the supply and demand of segment information, the norms of segmentreport in our country and the actual disclose degree of the listed company. Then, analyze theexisting problem from these relevant aspects and solve them. At last, through the experiencewhile using for reference standards in segment report abroad, put forward the potentialproblem in segment report of our country and have perspective solutions.