Consolidated Statements Merge The Study Of Theoretical Issues,

Consolidated financial statements is Known as one of the four financial accounting problems. In recent years, it has been causing widespread concern inthe academic community. This assertion researched some problems about Consolidation Theory of Consolidated Financial Statements and tries to explore the Positioning of the Consolidation Theory in China in the future.In the first part this research began with the sources of Consolidation Theory. It means that the source of Ownership Concept is Owners Theory and stresses the ultimate ownership of the owners. The Entity Concept stresses corporate property rights, and Parents Concept is compromise of the two. On this basis, the assertiondiscusses the integration of three merging concepts in practical applications. At last, it concluded that Entity is trend of development.In the second part article analyzed the factors which influenced choice of Consolidation Theory. The first factor is Accounting Object, then the articleelaborated how the principal "substance over form" influenced the choice. Ownership Concept twisted the principal which Entity Concept meted. At last,the research concluded that the third factor was knowledge of nature of "control".In the third part article elaborated how Consolidation Theory influenced the consolidated financial statements. First, the research introduced the scope of themerger in different theories. The scope of Ownership Concept was narrower than that of Entity Concept. Second, article analyzed how Consolidation Theory influenced the method of the merger. At last, article introduced the differences of consolidated financial statements in Parents Concept and Entity Concept.In forth part article exposed the Positioning of the Consolidation Theory and our choice in future. First, It is considered that the Consolidation Theory of Interim Provisions was fuzzy. The view of the research about Consolidation Theory of new Accounting Standard was that it reflected Entity Concept. At last, combined with advantages of Entity Concept, it was concluded that our best choice was Entity Concept.Innovations of this article mainly are: 1.Exploring fusions about Consolidation Theory.2.Viewing consolidation from a new angle. It exposed factors which influencing Consolidation Theory from the angle Accounting Object.3.Concluding that Entity Concept is our choice in future by exploring the changes of at home and broad.