A Study On Income And Income Statement

With the coming of knowledge economy in 21 Century, the capital market develops rapidly and the activity of the enterprises become more and more complicated and diversiform and the innovation of finance bring large risks, which make accounting face endless problem and challenges. The traditional financial report can' t report the real value of the enterprises and potential risks that they face. So the reform of financial report becomes an urgent problem.To achieve the transformation of the financial report' s goal from Accountability to Decision-usefulness, nowadays the emphases on the reform of financial report is the income statement, some accounting organizations who make the criterion of accounting such as FASB, ASB , IASC and G4+1, set about improving the traditional income statement They have put forward the concept of comprehensive income and relevant concepts, the form of its reporting.the current income statement in our country is based on historical cost principle, matching principle and prudent competent principle ,which reflect management performance of enterprises and management achievement mainly. As the capital market of our country develops and the innovative tool of finance applies day by day, how to improve the income statement of our country, we should use the experience of study both at home and abroad for reference. At same time, we need study the income statement that is suitable for our economic environment. The thesis has proposed proposing step and content of the comprehensive income statement of our country. The thesis is divided into there chapters.Chapter 1: The basic treatise of income and its reporting. This part mainly discourses upon income statement' s function and describes its historical gradual progress in concise and introduce some basic concepts correlated with the income statement. Besides, it introduces the basic theory of the income statement and financial performance reporting and challenge that the traditional income statement facesChapter 2: The theory of comprehensive income reporting and the compare with international mode of the comprehensive, analyzes its necessary trend.Chapter 3: Feasibility of comprehensive income reporting in our country, this part analyses the necessity of reporting comprehend income in our country mainly, and restrict the factor which make reporting comprehensive income difficult and impossible and proposes the procedure of application of comprehensive income.