Research On The Reform Of Classified Presentation Of Enterprise Income Statemen

With the increasing complexity and diversification of enterprises’ economic activities and the increasing diversification of enterprises’ operating methods,the proportion of investment activities in enterprises’ operating results has gradually increased,and even some entity enterprises have embarked on the road of financialization,showing a tendency to gradually get rid of the real to the virtual.However,the presentation of the traditional income statement does not classify the operating results according to the categories of economic activities.The operating profit item contains financial expenses,investment income and other non-operating profits and losses.It is difficult to distinguish the proportion of the profit and loss of each category of economic activities and the information of capital utilization efficiency and to reveal the risks behind the disengagement from real to virtual entities.In 2019,the International Accounting Standards Board(IASB)published a Draft General Presentation and Disclosures.In September 2020,the European Financial Reporting Advisory Group(EFRAG)held a workshop to field test IASB’s draft for comments.According to the draft,the reform classifies the profit and loss of the income statement into four categories: profit and loss from operating activities,from integral associates and joint ventures,from investment activities and from financing activities.Based on the draft issued by the International Accounting Standards Board(IASB),this paper analyzes the motivation of the income statement classification reform.In addition,this paper analyzes the specific contents of the reform of international accounting standards on income statement,focuses on the contents of the classified statement of profit and loss,and summarizes the changes of information presentation before and after the classified statement.This paper chooses Youngor as the object of case analysis,uses the method of comparative analysis before and after classified presentation,analyzes the limitations of the income statement of Youngor under the current reporting mode,and recompiles the income statement of Youngor according to the requirements of soliciting opinions.The profit statement information before and after youngor reform is compared and analyzed.It is found that in the information listing of profit and loss sources,profit and loss of joint venture,asset impairment loss and line items,the classified reporting mode can help users to clarify the structural level of enterprise profits,analyze the strategic layout of enterprises and enhance the reliability of income statement information and decision-making relevance.Based on the above research,this paper puts forward some suggestions on the implementation of the classification of income statement in China.Based on the latest progress of IASB in the reform of income statement,the research of this paper can theoretically further enrich the research on the reform of income statement presentation and investment income classification,provide reference for enterprises to improve the quality of financial statement information disclosure in practice,and help to meet the information needs of stakeholders.At the same time,absorbing the latest results of the income statement of international accounting standards is conducive to the convergence of China’s accounting standards to provide a reference.