The Report Of The Owner's Equity

This assertion researches some theories about equity statement and itspractical use. Based on the effect on public issuing company according to theimplement of new accounting standard, the essay illustrates the equity statement'scompiling methods and the accounting information it exposes. From January 1st,2007, equity statement will be exposed in the public issuing company's annualreports, as one of the four basic statements, the increase and decline of equity is anillustration of the entity's general profit and general expenses. The new accountingstandard adds this section to reflect the general change of the entity's equity and toimprove the relevance of accounting information. In this circumstance, it'sessential to do a comparison research in Chinese new and old AccountingStandards. Through the research, we can clear direction of Chinese AccountingStandards development and promote the agreement to IASs.The essay chooses JiangNanGaoXian, a public issued company, as asample. The author investigates the company's financial statements of 2006, alsoaccounts, summarizes and analyzes differences between owner's equities underChinese new accounting standards and those under the old accountingstandards. The author finds main subjects which cause the difference betweenowner's equities under these two standards. The main subjects are, fixed assets,investment, foreign currency translations, financial instruments.Applying comparison research method and combining cases illustration, theassay analyses the differences from accounting standards aspect and compares newstandard with the old one, emphasizes on finding out the deep reasons of thedifferences. Though analysis and discussion on problems in Chinese accountingstandards, the author try to search methods to coordinate Chinese accounting standard with IASs, and to give some advises upon standardize Chineseaccounting standards.The essay consists of 5 parts:Chapter one, the summary of the equity theory in accounting. In this chapter,the author thoroughly discusses the development three main equity theories andthe main issues of these three equity theories, compares the proprietary theory withthe entity theory.Chapter two, establishment and analysis of the owners' equity statement. Thissection explains the main points of single and consolidated owners' equitystatements.Chapter three, caparison of new and old Chinese accounting standards,including comparisons of relative accounting standards of fixed assets,investment, foreign currency translations, financial instruments.Chapter four, introduction of investigation on JiangNanGaoXian, an issuedcompany's financial statements, 2006. In this part, the author shows thedifferences between owner's equities under Chinese new accounting standardsand those under Chinese old accounting standards.Chapter five is conclusion part. In this part, the author summarizescomparison of IASs and Chinese new and old accounting standard, discusses thedevelopment direction of Chinese accounting standard.Innovations of this article mainly are, 1. Viewing owners' equity from a newangle. 2. Introduction of investigation on JiangNanGaoXian, an issued company'sfinancial statements, 2006. The author shows the differences between owner'sequities under Chinese new accounting standards and those under Chinese oldaccounting standards. And limitations of this article mainly are, 1. It didn't applythe theories into methods. 2. Some problems were not discussed deeply enough.As a result of the limitation of the researcher's academic background, there are some impertinencies as well documentary restrictions in this paper. Theresearcher will work this afterwards.