| Gains and loss in China’s accounting principle are not independent factors, whose reason lies in the vague of the concept essence attribute recognition and the defect of accounting factor definition mode. According to different items of gains and loss and their difference from revenue and expense, there are different classification standards for factor concepts, however, current factor definitions mode is difficult to explain their definition defects. From accounting report objective, accounting factor definition mode can be set up based on market transaction view, furthermore, factor definitions can be obtained, gains are certainty implementation when economic power increases or economic liability decreases as accounting subject has no consideration, however, loss is certainty implementation when economic liability increases or economic power decreases as accounting subject has no consideration. |
