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company's revenues, expenses and earnings; it gives information about the financial performance of a company. Users of accounts who are concerned about the profitability can obtain relevant information in the comprehensive income statement and they can make use of ratios to take out information they need therein.

2.5.8权益变动表——2.5.8 Statement of changes in equity

IAS 1 requires that companies should prepare a statement of changes in equity to be presented with the same value as the other primary statements. According to Barry and Jamie Elliot this statement is vital because a quantity of gains and losses are required by law or accounting standards to be managed through directly with reserves, so as to prevent the financial statement from being incomplete.

The shareholders acquire more information about any changes made to share capital, retained earnings, revaluation reserves, share premium other reserves and to proposed dividends. Sometimes gains and losses may be easily traced by reserve accounting, which permits items to bypass the income statement. Hence the statement of changes in equity provides more transparency in reporting these gains or losses.

2.5.9现金流量表——2.5.9 Statement of cash flow

Section 217 of the CA 01 requires all companies to include in their annual report a statement of cash flow and the latter should be prepared in accordance with IAS 7. The purpose of IAS 7 is to include the provision of information about the historical changes in cash and cash equivalents of a company by means of a statement of cash flow. Cash flows are classifies during a period from operating activities, investing activities and the financial activities. Cash flow statement has become useful sources of information for users (Day (1986) and Yap (1997)).

2.5.10 会计笔记——2.5.10 Notes to the accounts

Notes to the accounts can be referred as explanatory notes that accompany the financial statements. These are intended to give further detail of the items appearing in the financial statements, to provide surplus information, to represent attention of related party transactions and to give existence of interest to stakeholders, other than the shareholders. It includes the IAS, concepts, depreciation policies and methods of valuation that an entity has used.

2.6 年度报告的有效性——2.6 USEFULNESS OF ANNUAL REPORTS

Stephen L.Buzby (1974) carried a research about the importance of disclosures in annual reports. Buzby created a list of 38 financial and non-financial items that might appear in an annual report and his aim behind that was to find the perceptions of professional financial analyst on those 38 items. At that time, changes in accounting methods were found to be the most important item. On the basis of the results, Buzby concluded that 'there was still room for an expansion of the extent of disclosure in the annual report'.

PriceWaterhouseCoopers (2007) conducted a survey on six countries and all the analysts and investors agreed that the income statement was the most important one and the cash flows statement and the balance sheet achieved its peak in terms of capability.

Studies conducted by Anderson (1981), found that the most readable sections of the annual report were seen to be the balance sheet, profit and loss account, notes to the accounts, a本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。