The Standard Financial Statement Of Industry

Many of the listed companies have some problems in the health of financial conditions due to the imperfection of market economy in China. Hence, we need to summarize the matured theoretical views both at home and abroad, make a judgment to the health of financial condition of listed companies. It became a subsistent question that how to evaluate the health of financial conditions of listed companies effectively, this will affect the evaluations of managers, investigators and the organizations related. Starting from this point, novel standard financial statements and simplified reading model of presented financial statements are constructed in this thesis, on the one hand, managers and other users of financial reports can find the health problems of companies by using standard financial statements, on the other hand, managers, investors and other people who use the financial statement can know the situation of the company’s financial health in the whole industry. This article proposed the solution in purpose, and improve the economic performance of the companies.In the literature review part, health remaining thinking model and transition thinking model from view of medical science are firstly introduced, from the introduction of these two models, standard financial statements based on the health of financial transition model is proposed. It suggests the relativity of financial health condition of enterprise in the dynamic changes of financial health and financial risks, defines the financial health. Financial health means a process during the company’s growing, of a healthier pursuit. Two applications of the standard financial statements are expected. First, it will compare the financial index of all companies in the same industry with standard index to see the deviation. Second, it will rank the financial health condition of all the companies in the same industry. Looking back of the history of financial statements, the reports of financial statements became international convergence, so the investigation of standard statements is based on the presented financial report, a standard value of its structure is given. Then, the financial early warning method and performance evaluation method of home and abroad are reviewed, a reference was provided in the determination of index and method. At last, the idea of financial standard statement of the industry was identified by looking back the literatures with notable different financial ratios, and finally the meaning and formation of standard financial statements system is established and detail ideas of standard financial statements are constructed.We choose the date exist from 2008 to 2012 of the Wind date basement. By a study of 152 Real Estate companies, with review and reference of the Previous efforts both home and abroad, and based on factor analysis, this paper has successfully extracted 11 main factors. By using these 11 factors with the weight of them, the paper sort the 152 companies in financial health. The paper choose the financial ratios and financial structure ratios of the top 74 of the industry as the standard ratios. By verifying feasibility of real estate industry standard financial statements, the paper establish a new method of build the standard financial statements of the whole industry. Firstly, this paper built a standard financial statement that can be used by a company. Secondly, this paper built a standard financial statement that can be used by an industry. In general, we can use this method to build any other industry’s standard financial statement to make read financial statement easier for both the investors and managements.At last, according to the actual situation and theoretical analysis, in the last part of the article we put forward the limitations of the research and suggestions. We hope to make every effort to provide new ideas of judgment of financial health and to contribute to a better company business.