The Related Studies Of Consolidated Financial Statements In Our Country

From the 20st century, a massive wave of consolidation was started. It caused greatdemand for consolidated accounting information.The enterprise group needs tointegrate financial information which is in their control scientifically and efficientlyso as to make an overall financial evaluation which is an issue concerned widely.Combinatied financial statements is one of the four global recognized accountingproblems. is one of most difficult challenges in accounting field around the world. Onthe one hand, it’s a controversial topic for many theoretical schools; on the other handit’s a complex and difficult accounting practice problem. In recent years, with thedevelopment of China’s market economy and the establishment of modern enterprisesystem and securities markets as well as the development of the asset assessment ofthe market, more and more companies expand their scale through merger. The mergerdoesn’t only exist in domestic enterprises, but also goes on between Chineseenterprises and foreign enterprises after China joined the WTO.Compared withdeveloped countries, regulations about accounting are established relatively late. Theearliest one appeared in the late 20thcentury.With the development of marketeconomy and the diversification of merger,these provisions cannot meet requirementsin new economic situations. Chinese ministry of finance releases No.20 of EnterpriseAccounting Standards--Enterprises Merge and Enterprises No. 33--ConsolidatedFinancial Statements as well as CAS No. 2--Long Term Equity Investment in 2006which set up regulations for the preparation and presentation of the financialstatements. These standards achieve a breakthrough by drawing lessons frominternational enterprises and considering the reality of China.This paper uses deduction, induction and cross-comparison methods to studycurrent merger accounting standards to find out differences between our financialaccounting standards and regulations in other countries which is helpful in findingflaws in accounting standards on business combinations in China.The scope ofconsolidation and merger of the Consolidated Accounting Standards are the mainfocuses. A comprehensive and systematic analysis will be done in those two issues inorder to put forward some suggestions for improvement of financial statements so therelevance and reliability of financial situation and operating conditions as well as cashflow position will be well manifested through statements, which will be helpful inmaking decisions efficiently for users.