Inventory Of Several Factors That Affect The Evolution Of Financial Reports

　　 (1) Internal stage

At this stage, the sources of capital of enterprise entities or economic entities are mainly individual capital. At present, all kinds of self-employed individuals belong to this type. The purpose of issuing financial reports is to let individual capital owners understand and grasp the financial situation and operating results of economic entities, and do not need to publish such information to others.

　　 (2) external stage

Under this stage, Personal capital It is unable to meet the needs of economic entities and the expansion of economic entities, and needs more and wider sources of funds. As a result, funds came from banks, governments or potential shareholders. The emergence of these capital providers has led to the gradual transformation of economic entities into external stages.

Moreover, different external capital owners should make appropriate decisions in the face of financial reports of various economic entities. Creditors should judge whether they have enough solvency, whether credit is good or whether they will go bankrupt. Potential shareholders have to judge that the economic entity has stronger strength to create value. In addition to judging whether the information issued by the economic entity itself is true or objective, the external user is also faced with a question of how to compare with other economic entities. This comparison is obviously faced with many differences. The comparability of financial reports issued by the economic entities within the same country is also relative, involving many factors, among which the most important factors are:

　　 financial system Normalization -- whether the accounting policies or systems used by different economic entities directly determine the results of financial accounting is comparable. For example, the accounting standards applied by Chinese listed companies and non-listed company are different. This may take into account the actual situation and diversity of different economic entities, but it also poses challenges for the external stakeholders.

The flexibility of financial system, when the same type of economic entity is faced with the same set of accounting standards, is also faced with some factors that can affect the comparability. This is mainly determined by the size of the space in which the accounting policy itself gives people the choice of decisions or the rules of accounting. The more ways to deal with the same economic business or accounting matters, the greater the difference between selectivity and comparability. For example, asset valuation methods, asset depreciation and amortization methods and so on. In addition, special business can bring greater comparability if appropriate subjective judgment is allowed. The subjective judgment of management or accountants of different subjects will be greatly different due to various internal and external factors.

The difference of economic entity -- different economic entity structure, especially the corporate structure and capital structure, determines the transaction relationship, which will lead to a great difference in accounting reports. Merger and non merger, offset or non offset, will involve many differences.

　 (3) international stage

Domestic sources of funds can not meet the demand or domestic market, resources and other departments to meet the demand. Under the conditions permit, resources such as funds of the economic entity cross the national boundaries, and the users of financial reports cross the border. And these transnational users will also face differences in comparability due to differences between countries.

Sources of funds: the sources of funds in multinational areas are more extensive, and the corresponding capital owners' information needs for economic entities are also different.

Legal environment: under the framework of case law and Codex law, there are also great differences in the formulation and regulation of accounting systems, norms and policies. In the case of a case, accounting regulations may be dominated by specialized non-governmental organizations. Under the code law, accounting regulations are dominated by government structures.

Tax environment: different countries have different requirements for accounting and tax accounting, some of them are one and some are relatively independent. But the overall trend is relatively independent.

Cultural environment: uncertainty, risk preference, individualism, secrecy and other factors.