Research On Applications Of Statement Of Comprehensive Income In China

Along with the repeat growth of world economy, an entity's operating activities are getting more and more complicated. One of these phenomenons is that entities keep founding new, untraditional source of income. But after a short while those untraditional sources of income let people realize that the income statement they were using faced limitations. Because the traditional income statement only report realized income but other unrealized increase of value, which makes it unable to fully cover user's need.So the statement of comprehensive income was introduced just to solve this problem. The statement of comprehensive income can report items a traditional income statement can't cover. It provided users with more useful information. Realizing that, recent years, the western countries and international standard-setting organizations have published several standards which require entities to report comprehensive income. But until now there isn't any standard alike in China, so it is quite urgent to study the application of statement of comprehensive income in China.This essay mainly uses normative studying method. The essay first discussed the definition of income and comprehensive income. Then it discussed the necessity and possibility of application of statement of comprehensive income in China. The essay also gives some advises on how to apply the statement of comprehensive income in China, based on the international compare. Finally, the essay discussed the ways to apply the statement of income in China, trying to give some new and creative thoughts.The essay is divided into five parts:The first part, the essay discussed the background and study method of this article. It also did the review of previous researches both home and aboard.The second part, the essay discussed the definition of comprehensive income, the limitation of traditional income report and the advantage of statement of comprehensive income, and the necessity.The third part, the essay compared four representative report models worldwide, try to find some experience for China.The forth part, the essay discussed the possibility of the application of statement of comprehensive income in China.The fifth part, the essay gives some advises on the application of statement of comprehensive income in China.The essay did some deep discussion and research on the latest developments and front of statement of comprehensive income. But due to the limitation of the study method and author's ability, this essay's theoretical depth is quite limited. However, its discussion is still scientific and effective.