Research On The Reform Of International Financial Statements And The Methods Of Report Analysis

After the reform and opening up the development of China’s economy has entered a "fast track", after 30 years of development, China has gradually narrowed the gap between the developed countries in the world, in 2001, China formally joined the WTO, China’s economy has entered the global economic arena. Economic globalization is an inevitable requirement of financial globalization, Chinese community in recent years has been committed to China’s accounting standards with international standards, in 2006, China’s Ministry of Finance issued a new accounting standard, first realized the convergence of accounting standards in China and the world. Although China has achieved convergence of international accounting standards, but some drawbacks of international accounting standards in Chinese accounting standards also exist some defect, the 2008 emergence of financial scandals and the outbreak of the subprime crisis so that the current number of defects in current financial statements can be revealed beyond doubt. In this case, IASB and FASB project team set up two coordination, October 16, 2008, jointly issued a "preliminary opinion of the financial statement presentation(Discussion Paper)". The reform break the previous reform efforts, from the presentation of a new perspective on the financial reporting of financial statements a few comprehensive reform, and in the past compared to the financial statements of the reform can be called a revolution.This paper conducted a comprehensive review of the history of the evolution of our current financial statement presentation, and profound analysis of the current financial statement presentation as a whole drawbacks, detailed analysis of the shortcomings of the sheets of the respective statements exist. In addition reconstructed the two electricity companies balance sheet and income statement in accordance with the requirements of the discussion paper, and use DuPont Financial Analysis System to analyze the reconstructed report, thereby demonstrate what can be achieved if the reform target of IASB and FASB two organizations.