Research On The Limitations Of Chinese Financial Report And The Improvement Measures

Financial reports refer to that the enterprise provided the accounting documents which reflect the financial station in a specific date and the operating results and cash flows in a certain accounting period, which include the main financial statements and related note information. With the development of market economy and international convergence of accounting standards, providing high quality financial information is becoming the main task of the countries' financial reports; in recent years, the frequent worldwide financial crisis much more revealed the deficiency of financial reports, therefore, countries in the world make great efforts at improving the financial reports and eliminating the differences among reporting format, method and content.This paper analyzes the limitation of financial reports and proposes the suggestions, which has five parts. The first part mainly introduce the environment of the financial reports, analyses the research situation and the proposes the aim and meaning of this paper. The second part mainly studies the present situation and limitation of Chinese financial reports, and from the aim, content, model to analyze the limitation. The third part compares our financial reports with that of IAS(International Accounting Standards Committee), American, English, and then absorbs the advantages of these countries' financial reports. On the basis of the third part, the fourth part of this paper combines with the " improving financial statements advice" and puts forward specific suggestions to present financial report, the goal of this paper is to strengthen the tightness and inner link among balance sheet, income statement and cash flow statement, so that the users of financial statements could evaluate enterprise financial position, operating results and financial status changes better. According to international accounting standards coordinate project, this paper also puts forward the suggestions of introducing its Statement of Changes in Equity model, whose purpose is to simplify our country's existing one. For the statement notes, this paper puts forward improvement suggestions according to the diversity content of notes in the America and other developed countries.