Consolidated Financial Statements Related Issues

Today economy develops fast. Group company builds andenlarges mostly by combination. To express the condition of thewhole enterprise and satisfy the users' needs, editing combinedfinancial statement of group company is very important. But now the study of combined financial statement has nodefinite conclusions and scholars have different viewpoints forit. So the study of combined financial statement becomes moreand more important. In the thesis, the author analyses theproblems of combined financial statement and offers theauthor's viewpoints. In the study of combined financial statement, the authorpays attention to practice and try to combine theory andpractice. In the thesis, first the author studies the combined theoryand contrasts several existing theories and the rules of severalcountries. Then the author anticipates the future tendency ofcombined theory and offers a new combined theory. Secondly, theauthor analyses the international differences of other problemsand anticipates the future tendency. Thirdly the author analysesthe reasons of the international differences and introduces theinternational coorporation. At last, the author offerssuggestions for the problems of China.The thesis consists offour charpters, arranged as the following: Chapter 1 is the deep study of combined theory. The studyconsists five charpters:⑴Introducing three existing combinedtheories by their definations;⑵Analysing the characters of thetheories. The characters are the users,theory base and thereaction in statement;⑶Listing the advantages and defects ofthe theories which can become the base of new theory;⑷Contrasting the different rules of countries. By contrasting,the author thinks the theory which mainly uses entity theory willbe predominant. Then the thesis gives the reasons. The analysishas important influence on the new theory;⑸Offering the newtheory:①When group company has one parent company consisted bymany subsidiary companies, the new theory mainly adopts entitytheory and adopts some advantages of parent-company theory;②When the subsidiary company is controlled by several companies,the combined financial statement may use ownership theory. Chapter 2 is the study of other problems of combinedfinancial statement. The point is drawing the internationaltendency of these problems by contrasting the standards of thedeveloped countries and the International Accounting Standards(IAS). Maybe the contrast is useful to Chinese standards. Thestudy consists four charpters : ⑴ Combined methods.Bycontrasting,now pooling-of-interests method is cancelled bymany countries definitely and purchase method becomes the onlycombined method. In the part, the author lists the reasons ofcancelling pooling-of-interests method;⑵Combined goodwill.The point are the new standards of 《Statement of FinanceAccounting Standards No. 142》and 《International FinancialReporting Standards No. 3—Business Combination》.The tendencyare using the test of decrease in value and cancellingamortization method;⑶Combined extent. The point is the newstandard of 《International Accounting Standards No. 27》; ⑷Foreign money translate method. Now current rate method andtemporal method are the main methods. But the new《InternationalAccounting Standards No. 21》 cancelled current rate method andtemporal method becomes the only method. Chapter 3 are analysing the reasons of the differences andintroducing the international coorperation. ⑴Analysing thereasons of the differences from financial circumstances. Theauthor analyses some imoprtant factors:①historical factor;②political factor;③law factor;④economic factor;⑤culturalfactor; ⑥ educational factor. ⑵ Though differencesexit,differences are being cooperated. ① Germany and Japancooperated by themselves; ② European Union cooperateddifferences by the seventh instruction; ③ InternationalAccounting Standards Committee and Board coooperated byInternational Accounting Standards and Financial ReportingStandards; ④ The author offers some problems of combinedfinancial statement which still are not...