Research On The Disclosure Of China’s Listed Companies’Non-controlling Interest

International Accounting Standard Board (IASB) launched International Financial Report Standard10(IFRS10) which contains a new guidance on control and mergence on May5th,2011. IFRS10determine whether the control exists by the combination of authority and risk exposure to the variable return. According to IFRS10, the control exists when the investor have authority, exposed to variable return and is able to affect his return by his authority. The key principal of new standard is, only when the investors have authority over the investor, expose to the variability of the return and can affect the return by his authority can he control and request consolidation. The new standard also includes principals and audiences on the measurement of non-controlling interest, potential voting rights and accounting treatment toward the loss of control. There is long history of research on its disclosure in consolidated financial reports even since the beginning of non-controlling interests. With the argument of the definition of control and the evolution of mergence idea, the non-controlling interests, one of the most important aspects of listed company’s financial disclosure, has grown from a tiny issue that used to be ignored to a giant that might affect the whole result of the annual report. Thus, how to ensure the relativity and reliability of the disclosure of non-controlling interests is more and more valued by the theoretical and practical circles. The theoretical circle’s attitudes toward the properties and the amounts of non-controlling interests vary dramatically and need deep analysis and argumentation. At the mean time, standards and regulations toward this aspect were modified several times in practice and still waiting to be classified and summarized. For the reasons above, I decided to choose the Accounting Information Disclosure of The Listing Corporation Non-controlling Interest as the topic of the paper.This thesis mainly adopted normative research method and made analysis and evaluation via summarization and comparison of documents and summarization of non-controlling interests theoretical problems. It tried to provide practical suggestions and opinions on this topic by analyzing the disclosed data relating to non-controlling interests of selected listed companies in China and by researching the enterprises and investors use of these data.This thesis can be divided into five parts. The first part mainly introduces the background and meaning of research, the topic and research method and points out the main problem this thesis tries to solve. The second part introduces the theoretical basis of the research on the disclosure of non-controlling interest and then elaborates the disclosed data from decision usefulness aspect and merged financial report interpretation aspect. The third part analyses the current status of non-controlling interest disclosure and the problems within by researching the collected data of non-controlling interest of listed companies. The fourth part provides suggestions to the existing problems in the disclosure of non-controlling interest in China with reference to the international research on this topic. The fifth part is conclusion.After statistic analysis of the data disclosed by the listed companies, I think the disclosure of non-controlling interest in listed companies annual reports were inadequate and not standard. On one aspect, the information disclosed in listed companies’annual report were inadequate and even couldn’t meet Chinese relative standard. On the other aspect, the users’abilities of analyzing and utilizing the annual report still need improvement.