Accounting Standards of the four new understanding of the concept

[Abstract] the contents of the new accounting standards and accounting concepts in the old criteria in terms of a series of repair, improvement, achieved a breakthrough and innovation. The most important is the use of, the introduction of a "principles-based concept," " convergence of ideas "," View of the concept balance "and" fair value concept. "properly understood, the key to implementing the new guidelines is that a correct understanding of the concept of the four new accounting and Its Influence.

[Keywords:] the contents of the new accounting standards system concept

A new principles-based accounting standards developed by the concept
1. China's new corporate philosophy to follow Accounting Standards
The development of new accounting standards followed "principles-based concept," and follow the old criteria is "rules-oriented concept." Enterprise accounting standards system in China using the new "principles-based concept," based on the philosophy, guiding principles, system design, content arrangements, technical standards, integration, new business accounting standards system includes two pArts: First, the basic criteria. Second, specific criteria.

2. Principles-based concept of superiority and influence
"Principles-based, said," is to an object or transaction, the accounting matters, financial report should follow the principle. That it does not try to answer all possible questions or provide details of each rule in order to avoid "rule-oriented, said "The number of defects, to bring China's accounting work had a major impact.

(1) laid the platform of unified accounting, with a proven, consistent, scientific standards to regulate accounting. (2) is conducive to international accounting harmonization, is conducive to further optimize the Investment environment in China, to raise China opening up level. (3) principles-based concept, each firm may be the same transactions in different professional judgments based on the use of different accounting treatment. Therefore, the requirements of vocational training accounting staff to improve the quality of accounting practitioners.

Second, the concept of convergence with international accounting standards
1. "International convergence" concept in the use of new guidelines
In accordance with international rules, the new system of strictly defined criteria for the definition of the accounting elements, clearly defines the elements of the accounting recognition criteria, highlighting the balance of authenticity and reliability of the project; the same time, upholding the historical cost, but also introduced fair value; new standards in accounting principles, the importance of retaining the principle of the principles of clarity, the role of chemotaxis by the principle of prudence, substance over form principle role in the growth trend, emphasizing the importance of relevance, and accrual historical cost accounting is no longer used as a basic principle. Therefore, changes in accounting principles is convergence with international standards. China Accounting Standards Committee and the International Financial Reporting Standards Board have signed a "Joint Statement" of the Chinese Accounting Standards and International convergence of financial reporting standards given the fact that recognition and affirmation. in accounting principles, accounting measurement attributes and accounting policy choice in terms of new accounting standards system draws on international accounting standards. However, convergence does not mean the same, in the disclosure of related pArty transactions , the reversal of impairment losses, some of the accounting treatment of government grants, the new accounting standards to maintain the "Chinese characteristics."
2. The concept of convergence
New accounting standards and international accounting standards convergence, is a milestone in China's capital market development. And the international convergence of accounting standards, and promote China's economic development, but also realize the internationalization of accounting standards from passive to active convergence, influence each other, and jointly promote to jointly improve the situation, reflects the convergence of both direction, but also the basic idea of interactive, open up China's accounting standards setters and equal dialogue between the relevant international organizations, exchanges and consultations of the channel. to make investors more confidence in China's capital market and financial reporting, will attract more investors to invest in a wide range of Chinese companies. enhance the international influence our economy and help China's enterprises listed overseas. to expand our business in the international economic and trade activities.

Third, the concept of balance concept
1. "Balance sheet view of philosophy" and its application in the new guidelines
New accounting standards system in the determination of income, the definition of accounting elements and the balance sheet and income statement of the importance of understanding a "balance sheet view": that is certain in the development of standardized criteria for transactions or events, the first specification which Class of transactions or events related to assets and liabilities arising from the recognition, measurement, then defined according to changes in assets and liabilities to verify income, balance sheet is more important than the income statement. of elements of the new accounting standards in the accounting aspects of the definition has been Under the old criteria of "revenue and expense outlook" to "balance concept." <"New Accounting Standards for Enterprises No. 18 - Income tax>> Article 4 of the enterprises in the acquisition of assets, liabilities, it shall determine its tax base ; assets, liabilities, the carrying value of its tax base differences, and should be recognized that the deferred income tax assets or deferred income tax liabilities. deferred income tax assets and deferred tax liabilities recognized concept is a manifestation of the balance.

Links to Research Papers Download http://www.hi138.com 2. View the concept of the balance of advantages and
(1) accounting information related to decision-makers to better meet the needs of more relevant
New Accounting Standards, more than ever concerned about the quality of corporate assets, a greater emphasis on the balance sheet of the financial position of the true and fair view, more emphasis on corporate profit model and the operational efficiency of assets, not just the results of operations. Concept Idea of the assets and liabilities contribute to corporate management on the future development of enterprises, enterprises face the opportunities and risks will make the right judgments, help to improve asset quality and operational business efficiency. enterprises to provide relevant information to better meet the needs of decision makers more relevant.

(2) increase the level of business decisions, reduce corporate profits manipulation is conducive to long-term development of enterprises
New accounting standards in the recognition, measurement and financial reporting structure, and established the core of the apparent position of balance and enhance the quality of information assets and liabilities, timely provision for asset impairment. Limited short-term behavior of enterprises, breaking the traditional pure profit assessment concepts, to avoid some companies focus on the income statement only of quick profits. require companies only in the owner's equity (net assets) to increase the circumstances, it indicates the increase of corporate value.

Fourth, the concept of fair value measurement
1. The real fair value measurement and its use in the new guidelines
The basic criteria of the new guidelines, pArticularly to increase and emphasized the "fair value" measurement attribute. Refers to the fair value of fair trading, familiar with the situation two pArties exchange their assets and pay the debt amount. Compared to the initial cost measurement method to measure the cost, the fair value measurement to stress that the valuation of assets should insist on an objective measurement to reflect the true value of assets. the real value of assets and other factors always change over time, compared to the cost of the static pricing, fair value reflects the value of the dynamic insist that this is a major breakthrough in the new guidelines and highlights. "fair value" measurement attribute mainly in the "<non-monetary assets >>,<< debt restructuring>>, <"Investment property >>,<< biological assets to pay >>,<< >>,<< share recognition and measurement of financial instruments,>> and other specific guidelines have been used.

2. The fair values of the advantages and
(1) the use of fair value can effectively enhance the relevance of accounting information, help information users to make the right economic decisions. Enriching the accounting measurement system, WTO, large numbers of foreign capital into China, for futures, options, forward contracts and other derivative financial instruments, only to its fair value recognition and measurement accuracy.

(2) the use of the concept of fair value to the enterprise risk and revaluation. The introduction of the new standards also retained the concept of appropriate care, taking into account the fair value of the misuse on the one hand, fair value applications are cautious, mainly in financial instruments, Investment property, non-business combination under common control, debt restructuring and non-monetary assets, we shall adopt; the other hand, have recognized the fair value of the corresponding provisions of Moreover, many companies fail the conditions currently measured at fair value can not be implemented.

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