Basic accounting and Countermeasures of Defect

Accounting is the main currency unit of measurement, the use of specialized methods, the main economic activities of the accounting is true, accurate and complete records, measurement and reporting. An accounting entity with good accounting must be based on two levels of protection: a is to comply with financial regulations and accounting professional ethics, and second, management procedures and accounting professional. When the subject of accounting there are more one-time accounting Information distortion, or less distortion, but a longer period was not corrected and the spread of trends can that there is accounting for the fiscal foundation of the main defects. author of this fundamental flaw of accounting specific performance and the adverse impact on business analysis, and the Improvement. First, basic defects in the accounting of actual performance

(A company subject to administrative penalties that exist in the fundamental accounting flaw

Reliability is an important foundation for high-quality accounting Information and the key. Financial report reflects the final results of accounting, whether it is in compliance with accounting standards of financial reporting quality requirements as a starting point, reverse the accounting of the main study whether there is a basic accounting defects, is a more convenient starting point. China Securities Regulatory Commission in 2007, the Administrative Punishment Committee, 2008, 20 cases of the illegal cases investigated, 10 of which play a direct accounting of the main display quality and reliability of accounting Information contrary to the principle of specific performance is not at notes the provisions of settlement payments between subjects chaos free to accounting adjustment.

(B present the case for rectification fundamental accounting flaw

The cases subject to administrative punishment, the basic needs of the accounting deficiencies and poor motivation of the parties will occur two factors co-exist. If the basic flaws of accounting for existing customers, but not at the same time there is an ulterior motive of the parties, or the existence of ulterior motive of the parties, but has not been free to abuse, only this time the CSRC issued the "Notice for rectification." Shenzhen, China Securities Regulatory Commission as the Authority in 2008, October 8 to October 30 Sanjiu Pharmaceutical Co., Ltd. conducted a field inspection and January 5, 2009 subsolar made a <"On the requirements of Sanjiu Pharmaceutical Co., Ltd. for rectification notice>>. the listed company accounting performance of the basic defects as shown in the table.

Accounting Sanjiu Pharmaceutical Co., Ltd. Basic Defect

Sanjiu Pharmaceutical Co., Ltd. in the business process embodied in the basic accounting deficiencies are also common in other businesses. This shows that the basis of accounting reality is not optimistic.

Links to Research Papers Download http://www.hi138.com

Second, the basic defect accounting adverse impact on business

The context of a major turn of the accounting system of the fiscal year, and often deviated from the integrity of certain accounting staff is easy, irregularities in the accounting year. The traditional accounting Information, mainly as a "fraud of the Information distortion" (false accounts, or "operational Accounting Information "(due to the low quality of accounting personnel or work the business sense of duty occurred. from the current point of view," corruption of information distortion "more as" selective distortion of accounting information, "the deformation present." operational accounting information distortion "is also attached to those who have professional competence in the business of the low quality of the work a strong sense of responsibility behind the manipulation of accounting personnel to make subjective bad intent to cast a protective layer, deformation as a" distortion of complex accounting information. "from the accounting the potential hazards of the basic defects of view, the two deformation distortion of accounting information is more worthy of attention.

"Operational accounting information" and "complex accounting information distortion," in common, in the accounting system, the guidelines provide a variety of accounting policy choice, the arbitrary choice of an inappropriate accounting policies, selection does not comply with the provisions of accounting policies, but also used with other policies or, worse, not the choice of the provisions of "self-made rules." accounting fraud after deformation, due to the "hidden dark out," throughout the accounting, financial reporting from representation of current and recent observations, was found. its business activities, stability and sustainable economic development of the performance as "chronic destructive."

Third, improve the basic defects in the accounting measures

(A position to establish the basis for Financial Accounting

With China's economic development and the process of upgrading the industrial structure, accounting personnel are gradually changing the structure of demand. However, with modern management techniques will be combined with the accounting, accounting information through the economic information associated with the processing, conversion, extension services for internal economic management management accounting, is the need to regularly provide financial statements in the main means that companies have a variety of external economic interests and business relations service for the purpose of social groups, in accordance with accounting principles and accurately accounted for, afterwards, reimbursement for the duties Financial Accounting foundation.

At present, China is establishing a sound system of Chinese Accounting Standards, targeting the international convergence of accounting standards, accounting practices made it more demanding, the difficulty is greater. Based on this, I believe that in the present and for a period of time, Construction of the accounting team should still be the starting point on the Financial Accounting, basic accounting to correct deficiencies as the entry point to improve the quality of accounting and accounting quality, and shift the focus of future work to create the conditions of management accounting.

(B settings and adjust the financial management framework

Accounting basis the fundamental position of not being undermined is accounting personnel structure optimization and rational allocation. To this end, the author suggests: In the state-controlled listed companies have changed the post of Chief Accountant Chief Financial Officer, the case of inconvenience to make changes, you can pilot additional large scale listed companies on the Chief Accountant, the implementation of "Chief Financial Officer, Chief Accountant double post appointment system," team chief accountant under the sequence of operations, Chief Financial Officer under the Board of Supervisors sequence (also Vice-Chairperson Board of Supervisors established the post of Chief Financial Officer . At the same time, the average size of Listed Companies, "Chief Financial Officer, Finance Manager (some known as the Department of Finance and Minister for double post appointment system," the current status of Chief Financial Officer, responsibilities are the same, but under the school along with the financial manager should be daily work of the department focus on accounting aspects.

Given the fundamental flaws both accounting and pressure to complete external financial reporting, but also with the internal implementation of management accounting functions related to this, I suggest: the rapid expansion in some large scale or have expanded into a company, be guided by certain developed countries Deputy General Manager of the modern large-scale enterprises to finance the most senior management, the Minister under the accounting, finance ministers of the one in charge of the accounting records and financial management of financial management, pilot the establishment of similar "under the leadership of the Financial Accounting Vice President Minister, Finance Minister responsible for the system, "the organizational structure. financial vice president of the company access to and effective use of funds of overall responsibility. Accounting Management Accounting Department minister, to assume financial and economic information of the recording and reporting of the causes of economic matters recorded under accounting entity's assets, liabilities increase or decrease the value of the register had the necessary calculations and processing, and the results communicated to the users of accounting information, the Finance Minister responsible for the issue of corporate securities and bank loan financing, managing cash and liquidity, development of credit and collection policies, engaging in securities investment and dividend arrangements and so on.

Or can not do without the institutional improvement, you can group or holding company headquartered in the Ministry of Finance (or Finance Department under the name of the establishment of "accounting counselor" positions, the choice of strong technical expertise and practical experience in the accounting staff for the rich post inspection subsidiary, to help affiliates improve accounting skills.

(C norms subsidiary accounts processing

Subject to administrative penalties in terms of case or cases within a time limit of view, a considerable number of accounting errors out in the subsidiary. Therefore, I believe, in addition to training to improve by enhancing the quality of its accounting personnel, the unified, standard treatment is a subsidiary accounts an important part. Specifically: the preparation of annual published by the <<�� �� Company Accounting Manual>> in the form of accounting treatment to be clear, make it go by. If the second year of management or accounting Tax departments are not new regulations, the previous fiscal year of the "Handbook" remain valid. If the annual accounting management in the new authorities or the provisions of the tax department, you can take temporary release additional notices to be clear, as the "manual" part of the additional Executive .<<���� companies together accounting manual>> also set the appendix, accounting for subsidiary easily go wrong in the case analysis of the matters or items in the form of a reminder.

Links to Research Papers Download http://www.hi138.com