Comprehensive Income Transparency And Earnings Management

Accounting Standards Board(ASB)has first required that "the total recognized gains and losses" should be a part of main Financial Reports,which show the whole financial performance with the Income Statement in the enterprise.Financial Accounting Standards Board(FASB)encouraged enterprises to show the comprehensive income either "two-sheet" or "one-sheet".The IAS1"interpretation of financial statements" of International Accounting Standards Committee(IASC),has required there must be a separated part to show the total gains and losses in the Financial Reports.Ministry of Finance of China issued new accounting standard system in 2006.It reflected the change the concept,from the Revenue-expense View to the Asset-liability View.It introduced the concept "gains" and "losses" which used in international accounting standard,also,it required make a separate sheet -"Reconciliation of Stockholders' Equity Accounts" which reflected the concept of "comprehensive income".Whether the higher the comprehensive income transparency shows,the larger the limits to the earning management.In China,the research of governing the earning management in the higher comprehensive income transparency way,also,applying the comprehensive income report in China in earning management way is little.Basing on the theory,the thesis starts from the status of comprehensive income and earning management in China,Proving the relationship between comprehensive income transparency and earnings management by the method of theory analysis and positive accounting.Drawing lessons from others who bring the standards of transparency,I say my opinion of comprehensive income transparency in China.Using the indexes: Information transparency,earning and conservatism accounting,I did the positive accounting research on the basis of listed companies in our country.Basing on the theory analysis and positive accounting,I present the way to govern the earning management and the pattern and method of comprehensive income report which fits for our country by researching the relationship between comprehensive income transparency and earnings management.