A Study of the Accounting Entity of a Business Preparing Consolidated Financial Statements

• Main Authors: YI-WEN, WANG, 王怡文
• Other Authors: GUEI-HUNG, HUANG
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/83683762051979068274

碩士 === 中國文化大學 === 會計研究所 === 90 === Statement of Financial Accounting Standards No.7 and the chap-ter of Affiliated Enterprises into the company law stipulate th- at a subsidiary had control force need to prepare consolidated financial statements. But, the judgment standard of control for- ce is inconsistent. To take for revising Statement of Financial Accounting Standards No.7 about the concept of control force in the future, this study was compared to the Entity of preparing Consolidated Financial Statements in many countries. In consideration of business groups playing important role on Taiwan economic structure, this study was also compared whether the financial ratio of the entity of preparing financial statem-ents was significant difference among business groups and parent company, Consolidated Company, Affiliated Company. If there were some evidence that accounting information of business groups is useful in Taiwan, Statement of Financial Accounting Standards No.7 should revise forward to the international tendency. The sample includes the firms listed on Taiwan stock Exchange for the years 1996-2000. The Entity of preparing financial stat- ements was divided into parent company, Consolidated Company. A- ffiliated Company, and business groups. Each entity was also di-vided into manufacturing industry and service industry. To comp- are whether the financial index (includes stability, profit abi-lity and growth ability) of the entity of preparing financial s- tatements was significant difference, we used descriptive stati- stical analysis, Z-test, T-test, one factor analysis of variance and Mann-Whitney U test, Wilcoxon rank sum test and Kruskal-wal- lis test of nonparametric statistics methods. We found that manufacturing industry was needed to provide the financial statements preparing by business groups. According to this result, managers had little incentives to borrow money bes- ides the balance sheet and beautify parent financial statements. But preparing consolidated financial statements and affiliated company’s consolidated financial Statements in service industry could disclose full view of the economical entity in business groups. And it seems more and more significant difference betwe- en business groups and other company.