Accounting information on the quality of the construction of

Abstract: The accounting Information quality is an important aspect of Research in the field of accounting, especially for construction companies, the particularity of its production and operation of the quality of accounting Information is important to enterprises. Learn current Information about the construction quality of corporate accounting problems, identify clear the source of distortion of accounting Information, and on this basis, to take certain measures to improve prevention, to improve the quality of construction is very important enterprise Information.

Keywords: construction companies, accounting information, distortion

Construction enterprises in the national economy, especially in the field of investment promotion play an important role in the formation. And because of such production and operation of the particularity of the quality of accounting information is always the major issues facing the construction business. Further understand the problems and their causes effectively solve the problem will actively promote the development and expansion of construction enterprises in China.

First, enhance the quality of construction enterprises need accounting information
Mainly used to process accounting information in the value of business process data generated by movement, in accordance with the provisions of the accounting system, regulations, methods and procedures, help them in decision-making process into financial information and other Economic information. Specifically, the accounting information is processed after the accounting data generated for the accounting management and enterprise information management needs of the economy. It includes: occurred in the past reflected in the financial information that the funds the acquisition, distribution and use of information, such as assets and liabilities tables, etc., directional information management needs, such as a variety of financial analysis reports can predict the future decision-making information, annual plans, programs and amount. accountancy through information provision and use to reflect past Economic activity, control the current Economic activity, forecast future Economic activity.

Accounting information is an important social and Economic basis for effective operation, and authenticity is the most basic requirements of accounting information quality, socio-economic requirements of the effective operation of accounting information can be objective and it reflects the facts. The construction business as a special kind of accounting accounting body, the accounting information quality is also of important significance to enterprises in the construction business development plays an important role: first, a true reflection of the construction of the production process of economic matters, the timely provision of corporate financial position and operating results related to, meet the information on the accounting information users need, second, to strengthen internal management and economic accounting, and promote enterprises to improve economic efficiency, and the third, the use of accounting information on the company's financial position, operating results and analysis of historical cost levels , can predict the business prospects for long-term development of enterprises from the decision support role.

The poor, the distortion of accounting information not only seriously damage the industry, the fate of construction enterprises, and will encourage all kinds of corruption and malpractice. Therefore, to improve the construction quality of accounting information is especially necessary.

Second, the construction quality of corporate accounting problems of information
The problem is that the quality of accounting information distortion of accounting information. General theory, accounting information distortion is the accounting information provided against the formation and the principle of objective truth, not accurately reflect the true accounting entity's financial position and operating results. Accounting information distortion can be divided into unintentional and intentional distortion of two types of distortion. no intention of distortion is present in the accounting of unintentional mistakes may be due to various reasons accountants in the accounting for various types of errors. deliberate distortion is intentional, there is purposeful, premeditated, targeted financial fraud and fraud, also known as accounting fraud. is to control the basic accounting information, personnel accounting entity itself or related to the main local interests, regardless of the interests of users of accounting information and the requirements of Accounting Information, deliberate tampering, forgery, concocted the accounting documents, misrepresentation, omission, concealment caused by the relevant accounting data and accounting information reported to the principal's own information does not match the actual phenomenon.

Experience from practice, the construction quality of corporate accounting in both the unintentional distortion of distortion, but also deliberate distortion, but more deliberate distortion components. Mainly are:
1. Do not follow the correct carry-over revenue. To achieve evade taxes, such as completion of the purpose of profit targets, not the extent required under the settlement project completion revenue recognition or early valuation, or delays carried over.

2. False financial statements. At present there are many construction companies in the withdrawal of open books, to artificially adjust the number of case reports. And even some construction companies have two sets of accounts table, differentiated. Statements are generally more serious internal and external reports depends on different departments and different.

3. Not recognized by the provisions of sub-management fee charged. To non-affiliated independent accounting project teams, business qualification certificate for free, sub-contracting units, affiliated companies charge a management fee, revenues are not recognized as required.

4. Cost management is in chaos. Enterprises tend to prepay for projects carried over subcontracting, subcontracting costs, making the cost accounting highly irregular.

5. Bill management chaos. Temporary labor expenses machinery rental fees, materials and other projects, often under false invoices, receipts, IOUs charged to the profit manipulation.

6. Costs split unclear. Administrative expenses and financial expenses, not properly apportioned to each construction project, completed projects carry costs, fees, expenses split is unclear, according to need manual adjustments.

Third, the construction quality of accounting information of the authenticity of the source of missing
(A accounting standards and accounting system is not perfect
At present, China's accounting standards, accounting system is not perfect. Construction enterprise asset impairment accounting practice, depreciation of fixed assets, or personnel matters in accordance with the accounting and other requirements of accounting standards, system requirements, according to corporate finance and operating characteristics of the environment, using their own professional knowledge and professional Experience of the accounting profession to determine the accounting issues, no doubt to some extent mixed with the subjective nature of accounting personnel.

(B enterprises lack awareness of the accounting oversight
Construction business in the financial behavior of business activities and accounting Laws and regulations conflict occurs, often one-sided emphasis on invigorating the business, re-bidding, block works, and relaxation of discipline and supervision violations, weakened the accounting supervision. Although the authorities every year to conduct the financial inspection tax, some construction companies will hire an accounting firm auditing the financial statements each year validation, but the regular, standard, and the breadth, depth and intensity of internal accounting supervision is not available to give strong support, can not form a Effective supervision of corporate accounting again monitoring mechanism.

(C interest-driven
Most of the implementation of construction enterprises within the contract responsibility system. Because of personal benefits, business leaders can often be made by virtue of their power to make false accounting staff, "book profit." Uncertainty in the construction business income to bring some profit manipulation operating space. median income recognition is based on the actual completion of works and approved by the owners or the Party and the visa can be reliably measured the progress of the image recognized by the percentage of completion method. However, the actual situation of construction enterprises is this: Measurement of time because of visa measurement of the amount of lag and visa access, and engineering change and the complexity of revenue recognition claims, the objective is indeed recognition of revenue for enterprises to provide some room for maneuver. and carried forward by how much percentage of completion costs are recognized have more subjective decision , construction companies often use "prepaid expenses" and "Accrued expenses" and "cost provisional estimate" and other adjustment of profits, resulting in distortion of accounting information.

(D is not high quality accounting personnel
Accountant accounting information is this "product" of the "producer", they directly affect the quality of accounting information quality. However, the construction of the overall quality of corporate accounting staff is not high. On the one hand, the accounting officers of the "business" Quality not high, accounting work in the front line in college education with the small number of personnel, accounting, lack of follow-up education efforts, many accountants are not familiar with the new accounting system, some young people lack the accounting expertise and skilled business operations skills, accounting for more complex hard to better treatment, on the other hand, the accounting officers of the "professional" moral quality is not high, adhere to the principle of strict Law enforcement, dare to fight against violation of discipline is less, on the contrary turn a blind eye to the violation of discipline and even take the initiative to make plans for the leadership more. Links to Research Papers Download http://www.hi138.com (five too much emphasis on construction production and despising the importance of cost management
Project construction period as short as a year or so, long as a number of years, in order to complete the construction on time and shelf-life tasks, the construction project led by the Department or the construction and technical personnel are often just grab the progress and quality, to the neglect of cost management. Which led to business with the lack of coordination, labor costs, materials, mechanical royalties can not be timely accounting of the original documents to the financial sector, resulting in actual cost accounting is not timely, especially in sub-projects and the settlement of migrant construction team is seriously lagging behind.

Fourth, to improve and enhance the quality of construction enterprises proposed accounting information
(A construction enterprises establish and improve accounting standards, system construction
To regulate the construction of accounting information necessary to establish and perfect the construction of the new environment to adapt to corporate accounting standards, accounting systems, reduce the fuzzy boundaries of the accounting concepts and to reduce the subjective and the follow-up education in the theoretical and practical problems on related guidance.

(B promote the construction of two internal corporate "responsibility system" to establish or improve
One is to establish an internal contract management responsibility system. Clearly at all levels of Zequan Li, strengthening incentive and restraint mechanisms. On the construction project to sign a "target cost management responsibility", a clear responsibility to the cost and responsibility of people and so on. According to the cost of completion of the responsibility, reward and punishment to the construction process and the actual costs after completion of the project were analyzed, reward and punishment after the audit in order to ensure timely and cost data, true and reliable. The second is to improve the internal supervision and accountability. to do the accounting supervision, only efforts by the accounting staff is not enough, should be established within the enterprise network system of accounting oversight, have attended various business units, the business sector but also for their functional characteristics and business processes to develop the internal control system and the common good supervision of accounting information.

(C actively promote the implementation of accountant
Accountant accounting personnel management system reform of China's new thinking. Implemented system of appointing one of the important objectives of strengthening the administrative department of a higher level under the project of the Ministry (in regulation, so that financial information is true and subordinate units, to better implement the higher level sector business strategy, efforts to mobilize under the project department (unit of production and management initiative. to be effective in appointing to strengthen publicity and education is necessary, correct understanding of accounting work, particularly in accounting assigned project department (in the person in charge but also to correctly understand and actively support the work of finance staff, and consciously accept supervision. while also correctly handle the relationship between the parties, which not only properly handle the project department to appoint accountants and the relationships between units, and properly handle the moderate centralization and the implementation of the right to self-management relations.

(D attention to the accounting team building and raising the overall quality of financial staff
First, to strengthen the accounting staff of professional ethics. Accountant is a provider of accounting information, we must assume accountability provided by Law. Uphold "honesty, personal integrity, follow the guidelines, not to cook the books," the purpose , to ourselves, the unit responsible for, nor responsible for business leaders to provide true and complete accounting information, worthy of "the masters" "staff assistant" in the title. Second, by learning <"Accounting Law"> and the financial regulations and the the financial management system so that financial officers acted according to Law, who shall act, regardless of the circumstances encountered, without loss of principle, not self-serving plans, to avoid arbitrariness and subjectivity. Finally, all business enterprises are familiar with the construction links and improve professional knowledge. through learning, business training and other means to improve the financial professional skills, to master the entire business process of construction enterprises in order to enhance all aspects of financial accounting, because accounting techniques to reduce errors caused by the business are not familiar with accounting information quality problems.

(E accelerate the construction of computerized accounting and accounting networks, promoting the "Sunshine accounting" building
The quality of accounting information is closely related to their work means. Urge enterprises to accounting information as a "factory affairs," "government affairs" of the important and widely accepted relevant departments and their supervision. To change the traditional way of accounting bookkeeping, accounting and actively promote computerization. Realizing computerized accounting, due to the use of accounting software requirements of national unity will make the accounting information collection, processing, handling and build a unified specification, can effectively prevent human fraud acts, to improve the accounting the timeliness and reliability of the information, so that the accounting information is more accurate, and timely.


References:
[1] WANG Yu. Construction Accounting [M]. Dalian: Dongbei University of Finance Press, 2004.

[2] NI Yong. Construction Accounting Information Problems and Countermeasures [J]. Economic & Trade, 2007, (6.

[3] Tang Caiyun. How to improve the quality of accounting information construction enterprises [J]. Chief Accountant of China, 2010, (4. Links to Research Papers Download http://www.hi138.com