analysis of the new century the development trend of the cash flow statement（新世纪的发展趋势,分析现金流量表）.doc

Analysis of the new century the development trend of the cash flow statement Abstract: The objective of financial reporting from the FASB theory, combined with the changing economic environment and the interpretation of China’s national conditions, that the cash flow statement, in theory, more in line with financial reporting objectives and requirements, in practice it will be favored by the statements of the general user, the more decision-useful features make it the future will inevitably become the core of the financial reporting system. Keywords: cash flow statement; financial reporting; financial reporting objectives First, the objective of financial reporting and cash flow statement Financial reporting objectives can be summarized as ‘decision-usefulness.’ Goal-based financial reporting to the cash flow statement with the traditional balance sheet and income statement comparison, would involve the following three questions: (1) what kind of statements and statements of the user’s investment, credit and more relevant decisions; (2) which reports to provide information more useful in predicting future cash flows of information; (3) which reports to better reveal the changes in financial position and business the ability to obtain cash. on these issues as follows: (A) the financial statements of the decision-making related research 1, the traditional decision-making related financial statements is reduced (1) accrual basis in the preparation and reporting on the balance sheet and income statement, there are many defects, so that investors can easily cause misunderstanding and poor decisions. Specific features: first, the balance sheet of the defect.’s Balance sheet is reflect the firm’s capital structure and financial condition report. It is generally through the current ratio and quick ratio analysis informed business solvency. With in-depth study of indicators, current ratio and quick ratio of the shortcomings exposed, although current asset