| The objective of the financial report which a public entity provides is of decisive usefulness to the investors. To attain this objectives, reliability,relevance and promptness are essential qualitative characteristics of the information. Accompanied by the continuous improvement of securities market and the maturity of the investors, a higher expectation of the accounting information on its relevance, promptness and thorough disclosure is requested by the investors, furthermore, by means of the rapid advancing of modern information transmitting techniques, the information disclosing cost is decreasing rapidly. It will be a popular tendency worldwide for a public entity to provide interim report for the investors. Having made a great progress since the foundation of the Chinese capital market for more than ten years, the total market values of all the common stock have exceeded fifty percent of the GDP in china, the supervision on the securities market is becoming mature gradually and the information disclosing system is improving continuously and coincident with most popular regulations. Early from 1991 the public enterprises in china began to disclose very simple interim financial report , then 1994 saw the issue of The Information Announcement Regulation No .3 [The Content and Style of Interim Financial Report for The Public Enterprises], and it has been mended four times respectively in 1996,1998,2000,2002 thereafter. Presently, either the content or the style of the interim information report in practice is more perfect. Moreover ,to enhance the promptness of the information disclosure in practice, in 2001.4, CSRC issued The Information Disclosure Regulation No .13 for The Public Enterprises — The Special Regulations on The Content and Styles of Quarterly Financial Report. According to this regulation, all the public enterprisesmust disclose their quarterly financial report at least on the first quarter of 2002. Unfortunately, neither in No.3 nor No.13 has concerned the recognition and measurement in interim financial report, so it caused a mess in the operating practice. In order to turn round this tendency, 2001.11 saw the issue of Accounting Standard for Business Enterprises: Interim Financial Report, which makes comprehensive regulations on the recognition, measurement and disclosure in interim financial report.Although the supervising frame on information disclosure has now been perfected, when we take an accounting of the peculiarity of interim financial information in forming, dealing and disclosure, it will be a very prominent and realistic problem about how do the investors react to the information of the interim report and how to improve the information qualities.The text will be illustrated as the following structure:The first chapter: preface—the economic thought about financial report This chapter mainly illustrates the critical role that the accounting plays in maintaining an enterprise as a normal operating organization. First of all in this part, the author lists five roles that the accounting information plays in maintaining a modern company as an organization that is limited by the contracts. Then, from the developing history of the business enterprises the section illustrates different information requirements from various subjects coming from different enterprise organizations. Through detailed analysis then the author declares that it is very important for the public enterprises to provide periodic financial report for the numerous investors especially small scale investors. Then, this chapter analyzes the present surroundings of accounting information disclosure in all sorts of Chinese enterprises and the tendency of Chinese governmental companies in reconstructing and reframing and concludes that: with the rapid improvement of Chinese capital market and more andmore companies raising their capital from capital market, the capital market will play a crucial role in the resource assignment, so it is very important for the public ent... |
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