The Research On Improvement Of Financial Reports Of Listed Companies In China

In2007, the U.S. sub-prime debt crisis triggered a global financial crisis. Some investment banks and some related interest organizations attribute the financial crisis to the fair value to transfer the key problem.2008financial crisis intensify in the global, the world’s major economies have adopted a loose monetary policy and positive fiscal policy to stimulate economic growth. In the post-financial crisis era, IASB and FASB jointly research for financial reporting in order to establish a high-quality accounting standards. From2007,China began to implement the new accounting standards, accounting standards in China is facing a new turn in the context of economic globalization and the international convergence of accounting change. In2009, the Treasury orders all listed companies to increase other comprehensive income and comprehensive income in the income statement, which also means that China’s accounting standards start to report the comprehensive income. In this Context, this paper explores the improvement of the financial reports of listed companies in China.This paper first review domestic and foreign literatures. Foreign literatures mention the content not only include financial statements and notes, but also include other reports which help people make a decision. Foreign literatures want to include the content of disclosure and change the form of financial report to strengthen the decision usefulness of financial report. Domestic literatures also mention the problems of financial statements. Identifying the needs of users, profit report and the research of the fair value are three points to improve the financial reports. In spite of their objectives are to improve the usefulness of financial reports, they emphasis on different points. Foreign literatures have a certain system on the financial reports research, because their researches include the definition, the content and the form of the financial reports. However, domestic literature talks the problems or the methods, seems to lack a certain system. So, this paper puts forward suggestions from the form and the content to strengthen a certain systemThis paper uses a "question-analysis-solving the problem,"writing idea for writing, it uses standard research methods, focusing on logical deduction and analysis of literatures, and focuses on referencing some cases of capital market in order to better support some of the points of the paper.First, the paper introduces the problems of financial reports in Chinese listed companies. Such as:The financial reports emphasis on financial information and neglect the non-financial information, The various statements of financial reports do not contact closely, The categorization of the financial reports isn’t appropriate, The financial reports emphasis on profit report and neglect comprehensive income report, Timeliness of financial reports is needs to be improved, The disclosure of the financial reports is incomplete. At the same time, the paper gives some reasons of those problems. Such as:The changes of Accounting environment challenges financial reports, The legal system has no in-depth corporate governance of listed companies, The requirements of included in the financial reporting is very strict.Then, the paper gets three points to improve the financial reports according to the latest research of IASB and FASB. The research mainly strengthen the link between the statements from the form of financial reports and help the users to predict the scene of the company. To do this, classifying statement items is very important.At last, this paper puts forward several suggestions which are conclusions of this paper to improve financial reports. There is a time to let the user like and be used to the improved financial reports, so it needs a decision to choose the way to improve. Otherwise, the paper thinks that we should provide different difficult reports to satisfy different needs. The suggestions are for the problems of the financial reports of listed companies in China, which integrate the idea of domestic and foreign literature According to the latest research of IASB and FASB. Such as:Properly classify the fair value of financial statement items, Add the report of comprehensive income per share, Financial and non-financial information disclose non-monetary assets, Disclose the impact of changes in economic conditions, Provide predictive information to provide the income statement, Strengthen the research on disclosure of financial reports,Disclose other non-financial information.