| Hundreds of years have passed since the birth of Double Entry to the use of the Financial Statement and later to the formation of the present Financial Reporting System. The changing environment helps the mode of disclosing of accounting information develop from the 12th century Double Entry to the modern Financial Reporting System, and it is this changing environment that helps reveal the great defects of the Financial Reporting System. The present Financial Reporting System, during a considerable period, catered to the users of the financial information, who demands the reliable and fair disclosing of the accounting information. Since the 21st century, with the changing of environment and the rapid development of the society, "more and more evidence shows that social and economic reforms have considerable impacts on the practice and theory of accounting... urging the accounting field to adopt new practice and theory of accounting." There are great changes of the need of the users cf the financial reports: the traditional financial reports can not cater to the users of the financial information in their needs of more information, and there exists enormous limitation both in the content-disclosing and the mode of disclosing. The present financial report stresses great emphasis on the disclosing of the information of the tangible things, such as the storage of the goods, machine and other equipment; While it fails to give full presentation of the financial information of the intangible things, such as knowledge, human resource and self-imposed honor in their selling practice. The present financial report fails to reflect the hazard and the uncertainty of the selling practice; and it fails to fully reflect the performance of social responsibility shouldered by the enterprises; it fails to give a complete solution of the problems of confirmation, evaluation and report of the derived commercial tools; ft lacks the disclosing of the grouped information. The present Financial Report is set according to the general standard, which can not successfully cater to the users of the financial information in their demand for diversity and specialty of the information. The basis of the measurement of thepresent Financial Report is one-dimensional, which fails to give a full presentation of the economic reality; the utility of the basis of the measuring of the marketing value can not cover the whole; It focuses on the legal procedures instead of economic contents; and it also lacks efficiency, etc."The present financial report is far too obsolete," and it confronts both the reform and opportunity to develop itself. Based on the future development of the financial report, we should improve the content and structure of the financial report, making it better cater to the new need of the users of it.The article, exploring the defects and shortcomings of the present financial report and consulting the research home and abroad, comments on the future development of the financial report in its content-disclosing and mode of disclosing and offers suggestion for improvement, helping the account-disclosing develop in the future.The article comments the trend of the development of the present Financial Report System in five parts.First, it gives a general introduction of the concept, content and characteristic of the financial report and the description of the content of it in many countries.Second, it briefly introduces the historical origin and structure of the financial report, the birth and development of accounting disclosing.Third, it gives detailed statement about the basic concept, quality, characteristic and grouping of the accounting environment, which are closely related to the formation and development of the present financial report.Fourth, it offers further analysis about the limitation of the content-disclosing, mode of disclosing and other aspects in the present financial report and the causes of the limitation.Fifth, it makes detailed comments on the future development of the content-discl... |
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