| To make financial statement users understand items of financialstatements very well, notes to financial statements were born. Withthe development of economy and capital market, demand for financialstatement users changes with each passing day. To satisfy the demandfor users, it is necessary to improve the financial statements. So theresearch of notes to financial statements becomes very important, andit has drawn much attention of accounting profession. Notes tofinancial statements have been independent and indispensable parts ofthe financial statements, and these fascination lies in improvingaccounting information' s qualities and building up the integrality offinancial statements. Therefore, they can improve business reportingand provide useful information for financial statement users to makedecision.In western countries, the research of the notes has got obviousdevelopment in near several decades. The notes have made up ofperfect content and frame system. In China, with not only reform andopen -- door policy but also especially issuing Accounting Standard forBusiness Enterprise since 1992, the study of notes to financialstatements gradually becomes a fresh topic in the field of businessreporting. However, it is a pity that in China notes to financialstatements do not truly satisfy with users' information demand ofsocialism market ecc)nomy. Whether in theory or in fact, there havebeen some Cluestions.First, the paper 1)robes into the conception and role of the notesand discusses the background and history in western countries..5.LSecond, the paper analyses the reasones and policies of the notes'information disclosure. Third, the writer tries to fabricate thecontents of the notes. Finally, the paper discusses some questions ofChinese notes' information disclosure. The dissertation consists offour chapters, arranged as follows:Chapter 1 is an introduction. in the first place, the authoranalyses the close relationship between the notes and severalcorrelative tenms and points out the conception of the notes. Theauthor also analyses the role of the notes, the present role of whichmaybe has: 0 building up accounting information' intelligibility; @)enhancing accounting information ` comparability; 0 makingimportant accounting information standing out; (17) embodyingaccounting information' integrality; (Dbalancing the conflict betweenrelevance and reliability . At the last part of this chapter, the authorprobes into the background and history of the notes in westerncountries. It is proved that the more developed economy is, the moreimportant the notes are. In west, the notes have consisted of structureand content. They have been important parts of financial statements,and develop towards the goal to satisfy the users' informationdemand.Chapter 2 dissertates why to disclose notes and these disclosureI)olicies. The reasons of disclosure include these demand and thesesupply, mostly they are (1) demand for investors, (2) demand forcreditors, (3) demand for information agencies and (4) supply ofmanagers. Notes' disclosure policies have unconstraint one andconstraint one. `The author puts forward the imperatives thatdisclosure of notes' information be regulated. The author also pointsout that it is better for absorbing in unconstraint contents.Chapter 3 tries to fabricate the contents of the notes, which isthe papers' focus. The writer analyses the principle deciding thecontents and claims that the contents comprise eight layers: (47) thestatements about falling short of GAAP or accounting rule; (Dsignificant accounting policies; 0 accounting changes which includea change in accounting principle, a change in accounting estimate,and a change in reporting entity, along with a correction inaccounting error; (47) the notes to item... |
