The Financial Reporting Model Based On Common Governance By Stakeholders

Corporate governance is a hot topic in Academy Studies at all times. With the standard on compositional range of a company's member, the discussion to corporate governance composition can be divided into two different theory models, Shareholder-focused Theory whose foundation is the right of shareholders and Stakeholder Theory whose foundation is the benefit demands of various stakeholders. Shareholder-focused theory, the owners of capital have the prior claims and control power to the residual assets, however, a corporation is a bargain organization composed of different stakeholders, each stakeholder shares in the property profits according as the number of economic resources which the stakeholder ploughs into the corporation. Though the status of stakeholders is equal in the sharing in the property profits, the distribution is unequal which depends on balance of power and the finial game result of each other. In the procession of the game, the status of other stakeholders is enhanced gradually; the common governance by stakeholders is the development trend of corporate governance. As a language of corporate governance structure(Joel Seligman 1993), accounting must be suitable to the development of corporate governance; at the same time, accounting has the reactive effect to corporate governance which would accelerate the development of corporate governance to the better direction. In 21 Century, corporate governance is in the transit of Shareholder-focused to Stakeholder, when we survey the current financial report, we would find that the current financial reporting model could not suit the common governance' request of stakeholders, therefore, it is necessary to innovate on it.Financial reporting model is a standard financial report form that has specific function and is composed of diversified element in order to achieve financial report aim. The paper makes the relation between corporate governance and financial report as cut-in point, and on this base, makes the reconstruction of accounting equation as jumping-off point, redesign the new financial reporting model, and then bring the...