Usefulness Of The Consolidated Financial Statements And Parent Company Statements

Due to the acceleration of the process of enterprise groups, as well as increasingpublic voice of the regulation of accounting information, an important source ofinformation for the decision making of the consolidated financial statements prepared inmany listed companies.Over the years, scholars and experts in the industry regarded moresights on the consolidated financial statements of research is basically focused on thetheoretical basis for the preparation of the consolidated financial statements, the method ofpreparation as well as the economic consequences of the different methods of merging, butdomestic individual statements of the parent company.The research is still blank. In thispaper, our dual disclosure system, that disclosed in the financial statements of the parentcompany and consolidated financial statements, analysis of the consolidated financialstatements and the financial statements of the parent company which is better for investors,creditors, etc. to provide more and more accurate information content.Brief introduction to the consolidated financial statements and the parent companyfinancial statements based on the theory, at home and abroad, the usefulness of theconsolidated financial statements and the financial statements of the parent company in ourexisting disclosure regime context, through empirical analysis,explore the usefulness of theconsolidated financial statements and parent company financial statements to investors,creditors and managers. Specific conclusions are as follows：(1) Price explain, on theconsolidated financial statements as a whole is superior to the parent company financialstatements when making investment decisions, investors should be more concerned aboutthe financial information provided in the consolidated financial statements.(2) in terms ofsolvency, the consolidated financial statements and the financial statements of the parentcompany financial indicators were significantly different, and the solvency of theconsolidated financial statements reflect poor. Mother, the word the company’s creditorswhen making credit decisions, should the individual financial statements of the parent,child-based, supplemented by the consolidated financial statements.(3) in terms ofprofitability, earnings information provided by the consolidated financial statements andparent company financial statements have significant differences, managers in conductingthe collective management decision-making and collective performance comparison, theconsolidated financial statements more useful.