Application Research On Comprehensive Income Statement

Financial report to reflect the financial accounting information, earnings informationoperating results of the evaluation of enterprises which is particularly important forinformation users and thus the income statement as the core of the financial reports muchthe concern of the majority of investors.With the continuous improvement of theinternational capital markets and the accelerating process of economic globalization,economic exchanges between countries have become increasingly frequent in theinternational market. The business scale and scope of the national companies continue togrow and develop. Diversea variety of financial derivatives becomg more widely applied.Development and changes in the economic environment must promote the development ofaccounting techniques. Accounting have their own drawbacks as a business language ofinternational exchanges, the ongoing reforms is needed to adapt to the rapid economicdevelopment.In the current income statement mode, the low information content, lack of disclosureon the comprehensive income information for the report user can not provide informationto forecast future financial position, obviously can not meet the information needs of theusers, thus affecting the investment decisions of investors. The comprehensive incometheory make the "income" to reflect its economic substance, and to improve theirdecision-making usefulness, and represents the direction of development of the moderntheory of comprehensive income, on this basis, the use of comprehensive income statementalso represents the future direction of the reform of earnings reports. In this paper, theresearch of the application of the comprehensive income statement in order to provide areference to the comprehensive income statement in China.Firstly it explains the theory of comprehensive income at home and abroad as well asthe report of the comprehensive income developing guidelines for the status quo,researches the international convergence of China’s financial statements presentationguidelines, compared the differences in China’s financial statements presentationguidelines and international financial statement presentation guidelines. Through theanalysis of the criteria for the convergence of costs and routes, gives the recommendedguidelines for the international convergence of financial statements in China. Then give acomprehensive evaluation of the current income statement. Income statement under thenew guidelines to some extent reflects the comprehensive income concept, but to face ofthe continuous development of the accounting environment, the current income statementis still facing serious challenges.Next, research the application basis of the comprehensiveincome statement, and give the mode of the comprehensive income statement for China’snational conditions and accounting level based on the content and features of thecomprehensive income statement in the draft. Research the application of thecomprehensive income statement’s impact on China, Analysis the need of thecomprehensive income statement in China.