On several theoretical problems of accounting element;

In this paper,based on the necessity and feasibility of implementing water resources accounting,determination and record of accounting elements of water resources as well as setting of accounts are discussed.

This paper has made a comparative study of accounting elements between the two so as to interpret the actual significance of the issuance of the new rules.

Firstly,the paper discusses the determinant factors about establishment of accounting elments based on the importance of accounting elements and its differences among Statements of Financial Accounting Concepts(SFAC),and analyzes a relevant question why cash flow statement doesn t establish accounting elements.

But every conutry s accounting elements are completely different due to the differences in factors such as environ- ment.

The logical mistakes involved in the division make the name of the category of the accounting subject and that of the accounting factors inconsistent.

This essay designes the three factors of the statement of cash flow,from the angle of the theory of accounting factors and offers a new way to prepare the statement of cash flow and set up its accounts and tittles.